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The Reference Base Year Is 2013

Question 126

Multiple Choice

The reference base year is 2013. To calculate the chained-dollar real GDP in 2012 we calculate


A) the value of the final goods and services produced in 2014 valued at the prices that prevailed in 2014.
B) the value of the final goods and services produced in 2014 valued at the prices that prevailed in the base year.
C) nominal GDP in 2014 multiplied by price level.
D) the value of final goods and services produced in the base year valued at the 2014 prices.
E) the base-year GDP and add the average of the increases in real GDP calculated using 2013 prices and 2014 prices.

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