The Base- Year Method of Calculating Real GDP Compared

question 35

Multiple Choice

The base- year method of calculating real GDP compared

• A) quantities produced in different years using prices from a year chosen as a reference period.
• B) prices at different points in time using a sample of goods that is representative of goods purchased by households.
• C) the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output.
• D) quantities produced in different years with the prices that prevailed during the year in which the output was produced.