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Economists Do Not Use Actual Values of Real GDP to Measure

Question 8

Multiple Choice

Economists do not use actual values of real GDP to measure economic growth because


A) real GDP holds price level constant, but in reality price level changes from year to year.
B) changes in real GDP could be due to fluctuations in the level of economic activity.
C) economic growth encompasses more than just growth in output.
D) changes in real GDP do not provide any information about income distribution.

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