Economists use the price index to eliminate year-to-year changes in GDP caused solely by changes in _____
A) the exchange rate.
B) the unemployment rate.
C) fiscal spending.
D) consumer demand.
E) the price level.

Question

Quizplus · Accepted Answer

The price index is used to eliminate year-to-year changes in GDP caused solely by changes in the price level, making it easier to compare GDP data over time without being distorted by changes in prices.

Economists Use the Price Index to Eliminate Year-To-Year Changes in GDP