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Using Actual Values of Real GDP to Measure Economic Growth

Question 120

Multiple Choice

Using actual values of real GDP to measure economic growth


A) yields misleading results because changes in real GDP are affected by cyclical changes that do not represent economic growth.
B) is the most widely accepted method of measuring economic growth.
C) introduces problems because of inaccuracies in the measurement of real GDP.
D) is superior to using actual values of nominal GDP because it allows us to isolate the effects of price changes.

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