Statistics on Real GDP During World War II May Give

question 50

Multiple Choice

Statistics on real GDP during World War II may give a misleading indication of whether World War II was a period of prosperity because

• A)inflation may have been considerably higher than estimated.
• B)most of the increased production was for military goods,not consumption goods.
• C)government agents purposely inflated the production numbers to maintain American support for the war.
• D)government agencies were shorthanded and did a particularly poor job of collecting data.

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Definitions:

Liquidated Damages

A set sum of money required as a penalty for not fulfilling contractual obligations.

Injunction

A legal order issued by a court that directs an individual or entity to do or to refrain from doing a specific act, used to prevent harm or to preserve the status quo pending a final determination of the case.

Specific Performance

A legal remedy requiring a party to execute a contract as agreed, rather than paying damages for non-performance.

Specific Performance

A legal remedy that compels a party to execute a contract according to the precise terms agreed upon, rather than awarding damages for breach.