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If a Particular Measure of Real GDP Consistently Underestimates Growth

Question 24

Multiple Choice

If a particular measure of real GDP consistently underestimates growth in real GDP, then the rate of inflation as measured by the GDP deflator


A) will be overestimated and underestimated equally often.
B) is not a good predictor of the inflation rate in the CPI.
C) will consistently be underestimated.
D) cannot be calculated.
E) will consistently be overestimated.

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