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Introducing Concepts - Nominal GDP and Real GDP
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Introducing Concepts - Nominal GDP and Real GDP
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10. Introducing Economic Concepts / Introducing Concepts - Nominal GDP and Real GDP / Problem 5
Problem 5
What is a limitation of using real GDP as a measure of economic performance?
A
It does not account for changes in the quality of goods and services over time.
B
It includes inflation adjustments, which can distort economic analysis.
C
It measures only the monetary value of exports.
D
It is affected by population growth rates.
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