All of the following present significant problems with measuring real GDP and the price level except
A) changes in absolute price levels.
B) changes in relative price levels.
C) changes in the quality of goods over time.
D) the introduction of new goods.

Question

Quizplus · Accepted Answer

Changes in absolute price levels are actually a significant problem with measuring both real GDP and the price level. Inflation or deflation can skew the numbers and make it difficult to compare GDP or prices over time. B, C, and D are all also significant problems with measuring GDP and the price level, as changes in relative prices, quality of goods, and the introduction of new goods can all distort the accuracy of these economic measures.

All of the Following Present Significant Problems with Measuring Real