Suppose a nation's 2008 nominal GDP was $972 billion and the general price index was 90.In order to make the 2008 GDP comparable with the base year GDP,the 2008 GDP must be:
A) adjusted downward to $678 billion.
B) deflated to $896 billion.
C) inflated to $1080 billion.
D) deflated to $1080 billion.
Correct Answer:
Verified
Q140: Suppose nominal GDP was $360 billion in
Q142: Assume that the size of the underground
Q146: GDP data are criticized as being inaccurate
Q149: The GDP price index:
A)includes fewer goods and
Q150: If the per unit prices of the
Q163: GDP tends to underestimate the productive activity
Q176: Historically, real GDP has increased less rapidly
Q177: GDP tends to underestimate the productive activity
Q178: The GDP deflator or price index equals
A)gross
Q183: GDP excludes most nonmarket transactions.Therefore, GDP tends
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents