Multiple Choice
When there is inflation, the reliability of changes in GDP as an indicator of changes in production
A) improves.
B) is not affected.
C) declines.
D) is not affected, unless the change in prices is extreme.
E) None of these
Correct Answer:

Verified
Correct Answer:
Verified
Q19: National saving is defined as<br>A)income less consumption
Q20: A rise in nominal GDP indicates that
Q21: The CPI tends to understate inflation.
Q22: To be included in GDP, an activity
Q23: If prices were kept constant at 2016
Q25: GDP is unaffected by changes in the
Q26: What is the role of weights in
Q27: Exhibit 18-5<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 18-5
Q28: Exhibit 18-7<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6906/.jpg" alt="Exhibit 18-7
Q29: It is easier to measure GDP in