The base- year method of calculating real GDP compared
A) quantities produced in different years using prices from a year chosen as a reference period.
B) prices at different points in time using a sample of goods that is representative of goods purchased by households.
C) the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output.
D) quantities produced in different years with the prices that prevailed during the year in which the output was produced.
Correct Answer:
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Q186: Suppose an economy has some inflation. Then,
Q187: Which of the following is NOT a
Q188: Potential GDP is the
A) value of production
Q189: Potential GDP
A) measures the actual production from
Q190: In years with inflation, nominal GDP increases
Q190: In any year, real GDP
A) will always
Q192: The relationship between real GDP and potential
Q193: When all of the economy's resources are
Q194: Economists distinguish real GDP from nominal GDP
Q196: Real GDP measures the
A) general upward drift
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