We can conclude that there has been inflation since the base year if the GDP price index in the current year is _____.
A)10
B)equal to zero
C)20
D)greater than 100
E)negative

Question

Quizplus · Accepted Answer

The GDP price index measures the average prices of all final goods and services produced in an economy. The base year values are set to 100, so any value greater than 100 indicates an increase in prices, or inflation. Therefore, a GDP price index greater than 100 in the current year indicates that there has been inflation since the base year.

We Can Conclude That There Has Been Inflation Since the Base