GDP is an imperfect measure of well-being because
a. it does not measure standards of living.
b. it does not include household production.
c. it ignores many of the costs of production.
d. it excludes many goods produced within markets.
e. both b and c.
Question 2
How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real
wages? A) one
B) two
C) three
D) four
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