Prior to 1996 the government measured real GDP using 1987 prices
What would the rapid growth in computers and the fall in computer prices tend to do to the difference between true GDP growth and measured real GDP growth, relative to using a later year?
Using 1987 prices would tend to overstate GDP growth relative to using prices from a later year. Computers were a burgeoning part of national product in the late 1980s and early 1990s, and the incremental contribution to GDP looks bigger when using a bigger price rather than a smaller price.
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Which of the following are lags that fiscal policy makers must cope with?
A) effect time lags B) recognition time lags C) action time lags D) All of the above are correct.
The most important goal of the firm is to
A) maximize its revenues. B) maximize its sales volume. C) maximize its profits. D) minimize its costs.
The market demand curve for a perfectly competitive industry is
a. perfectly horizontal b. perfectly vertical c. upward sloping d. downward sloping e. nonexistent in perfect competition
Suppose you owned a nationally chartered bank. Your bank assets will increase when
a. the Fed buys government bonds from your bank on the open market b. the Treasury sells government bonds to your bank on the open market c. depositors take funds out of their demand deposit accounts at your bank d. the Fed sells government bonds to your bank on the open market e. the Fed lowers the discount rate