What price issue is not fully resolved by comparing states’ real GDP? » Graduate U.S. Economy MCQ » MCQ Academy

U.S. Economy

What price issue is not fully resolved by comparing states’ real GDP?

The use of a stated reference year
Price changes over time in the output measure
The distinction between nominal and real units
Geographic price differences in locally sold output

The use of a stated reference year
Price changes over time in the output measure
The distinction between nominal and real units
Geographic price differences in locally sold output

Note

Real state GDP does not fully adjust for geographic differences in locally sold goods and services prices.

Removing price changes over time is different from equalizing local prices across places. Real GDP is therefore not a complete measure of what a typical household can buy in two different states.

Tags: Economic Measurement, Evidence and Source Evaluation, Georgia Facts

Note

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