GDP May Inaccurately Measure the Value of Aggregate Output Because

question 58

Multiple Choice

GDP may inaccurately measure the value of aggregate output because it may not properly account for

• A) production in the underground economy and the true value of government production.
• B) the true value of government production and the proper value of purchases and sales of used goods.
• C) the proper value of purchases and sales of used goods and depreciation of consumer durables.
• D) the depreciation of consumer durables and production in the underground economy.

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Definitions:

Eleanor And James Gibson

Notable psychologists known for their work in perception and the theory of affordances, which suggests that the environment offers opportunities for interaction to organisms.

Habituation

The process of becoming accustomed to a stimulus or environment over time, resulting in a decrease in response.

Stimulus

Something that incites or provokes a physiological or psychological action or response.

Decreased Responsiveness

A reduction in the strength or frequency of a person's reactions to stimuli, which can be a sign of various physical or psychological conditions.