Improvements in the Quality of Goods and Services Over Time

Multiple Choice

Improvements in the quality of goods and services over time

A) cause GDP statistics to understate true output growth from year to year
B) cause GDP statistics to overstate true output growth from year to year
C) are fully accounted for in the Bureau of Economic Analysis' measurement of GDP
D) are reflected in higher prices and therefore do not affect the measurement of real GDP
E) are offset by declining productivity over time