If national income accountants fail to make an adequate adjustment for increases in the quality of goods and services over time,
a. increases in real GDP will understate the growth rate of real output.
b. increases in real GDP will overstate the growth rate of real output.
c. the GDP deflator will overstate the rate of inflation.
d. the GDP deflator will understate the rate of inflation.
e. both a and c are correct.
E
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The wartime demand for manufacturing goods directly impacted the economy in which of the following ways?
(a) Increased demand for factory workers (b) Increased demand for imported goods (c) Decreased demand for agricultural goods (d) All of the above
Your textbooks gives several examples of quasi experiments that were conducted. The following is not an example of a quasi experiment:
A) labor market effects of immigration. B) effects on civilian earnings of military service. C) the effect of cardiac catheterization. D) the effect of unemployment on the inflation rate.