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.

---

Definitions:

Money Value

Refers to the purchasing power of money, indicating how much goods or services a unit of money can buy.

Hawk-Dove Game

A model in game theory that examines the strategies of individuals in a conflict, where 'hawks' represent aggression and 'doves' represent peacefulness.

Payoff

The gain or loss realized from an investment, action, or decision.

Proportion

A segment or proportion evaluated in its relationship to the complete unit.