Multiple Choice
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a ?ve-year period are shown in the table. In determining real GDP, the nominal GDP for
A) each year must be multiplied by the relevant price index.
B) years 1 and 2 must be in?ated.
C) years 4 and 5 must be in?ated.
D) years 1 and 2 must be de?ated.
Correct Answer:
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A) current output at current
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