Suppose a Nation's Nominal GDP Was $972 Billion in 2017

question 5

Multiple Choice

Suppose a nation's nominal GDP was $972 billion in 2017 and the general price index was 90 in 2017.To make the value of GDP in 2017 comparable with the value of GDP in the base year, the value of GDP in 2017 must be:

• A)adjusted downward to $678 billion.
• B)deflated to $896 billion.
• C)inflated to $1,080 billion.
• D)deflated to $1,080 billion.

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Definitions:

Management Forecast

The process of predicting future trends, outcomes, or behaviors in business operations based on current data and analysis.

Trend Analysis

The practice of collecting information and attempting to spot a pattern, or trend, in the data, often used for predicting future events or behaviors.

Management Forecasts

The opinions (judgments) of supervisors, department managers, experts, or others knowledgeable about the organization’s future employment needs.

Organizational Indexes

Quantitative measures or indicators that are used to track and evaluate the performance, health, or condition of an organization.