A GDP Price Index of 100 for a Year Implies

question 86

Multiple Choice

A GDP price index of 100 for a year implies that:

• A)there has been no inflation during the year.
• B)the price level is three times what it was in the base year.
• C)the price level is one hundred times what it was in the base year.
• D)the price level is double what it was in the base year.
• E)the inflation rate has been 100 percent per year since the base year.

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Definitions:

Financial Plan

A comprehensive evaluation of an individual's or organization's current and future financial state by using currently known variables to predict future income, asset values, and withdrawal plans.

Funds

Financial resources set aside for a specific purpose or allocated to particular entities or projects.

Financial Plan

A comprehensive evaluation of an individual's or organization's current pay and future financial state by using currently known variables to predict future income, asset values, and withdrawal plans.

Additional Assets

Assets acquired by a business or individual that augment the existing resources, often enhancing operational capacity or value.