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:

Annual Rings

Concentric rings visible in the cross-section of a tree trunk representing a year's worth of growth; used to estimate age and historical climate conditions.

Tropical Rain Forest

A dense, warm, wet forest biome located near the equator, known for its high biodiversity and as the habitat for half of the Earth's plant and animal species.

Outward-Facing

Directed towards the exterior or outside of something.

Water Loss

The process through which water leaves the body or a system, which can occur through evaporation, excretion, or transpiration in plants.