Answer:
B) is overestimated using measures of income growth
Explanation:
Real economic growth is overestimated, because measures of income growth such as Gross Domestic Product and Gross National Income do not take into account inflation. To calculate Real GDP and Real GDP growth, inflation must be taken into account, usually the inflation index is the GDP Deflator.
The GDP Deflator measures the price changes of all final goods and services produced in an economy, in a given year.
Real GDP = Nominal GDP / GDP Deflator.
