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If a Particular Measure of Real GDP Consistently Underestimates Growth

Question 28

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

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