When Calculating Real GDP,the Reference Base Year

question 54

Multiple Choice

When calculating real GDP,the reference base year

• A)allows us to account for changes in GNP compared to GDP.
• B)always reduces the value of GDP compared to GNP.
• C)allows us to calculate the value of the goods and services in terms of prices of that base year.
• D)usually increases the value of GNP compared to GDP.
• E)allows us to increase the value of goods and services.

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