Multiple Choice
Changes in the relative prices of goods causes problems measuring real GDP because
A) consumers change their buying habits.
B) consumers buy less of the cheaper good.
C) firms produce more of the cheaper good.
D) price deflators only measure the price level.
E) they tend to be inaccurate.
Correct Answer:
Verified
Correct Answer:
Verified
Q61: The product approach to calculating GDP values
Q62: The income-expenditure identity is best paraphrased as<br>A)
Q63: Suppose that g1 represents the ratio of
Q64: In recent years,which of the following has
Q65: Recently,consumption has comprised approximately<br>A) 28% of GDP.<br>B)
Q67: Investment spending is<br>A) less volatile than consumption
Q68: The unemployment rate equals<br>A)<img src="https://d2lvgg3v3hfg70.cloudfront.net/TB34225555/.jpg" alt="The unemployment
Q69: The implicit GDP price deflator can be
Q70: Intermediate goods are<br>A) irrelevant in the overall
Q71: Acme Steel Co.produces 1000 tons of steel.Steel