Changes in the Relative Prices of Goods Causes Problems Measuring

question 66

Multiple Choice

Changes in the relative prices of goods causes problems measuring real GDP because

• A) consumers change their buying habits.
• B) consumers buy less of the cheaper good.
• C) firms produce more of the cheaper good.
• D) price deflators only measure the price level.
• E) they tend to be inaccurate.

---

Definitions:

Shared Ownership

A form of property ownership where multiple parties hold rights to use or possess property, often seen in businesses and real estate.

Tight Control

A management approach that relies on closely monitoring and controlling organizational activities and processes.

Production-Centred

Focused or centered around the production or manufacturing process within an organization.

Performance Results

The outcomes or achievements of an individual's or organization's work or activity, measured against goals or standards.