If you want to compare real GDP in 2000 and 2008, what prices can you use? I. 2000 prices for the 2000 GDP and 2008 prices for the 2008 GDP II. 2000 prices for GDP in both years III. 2008 prices for GDP in both years
A) I only
B) II only
C) III only
D) either II or III

Question

Quizplus · Accepted Answer

To compare real GDP across different years, you should use constant prices from one of the years to eliminate the effects of inflation. Therefore, you can use either 2000 prices for both years or 2008 prices for both years.

If You Want to Compare Real GDP in 2000 and 2008