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As the Service Sector in the U

Question 45

Multiple Choice

As the service sector in the U.S.economy grows, traditional productivity measures will become:


A) biased downward, because the qualitative aspects of a service tend to be understated.
B) biased upward, because quantitative improvements in the service sector tend to be overstated.
C) biased upward, because prices in the service sector always rise faster than prices in manufacturing.
D) biased downward, because service output leads to a long-run decline in the inflation rate.
E) completely inappropriate for measuring even manufacturing output.

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