The Drawback to Calculating Real GDP Using Base-Year Prices Is

question 215

Multiple Choice

The drawback to calculating real GDP using base-year prices is that

• A)real GDP in one year is not comparable to real GDP in another year.
• B)relative prices change over time, which is not reflected in base-year prices, and this distorts GDP.
• C)relative prices change over time and these changes are reflected in base-year prices.
• D)quality changes are reflected in base-year prices.
• E)base year prices do not capture changes in production from year to year.

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Definitions:

Maladaptive Patterns

Behaviors or thoughts that, while initially developed to cope with stress or anxiety, become counterproductive and interfere with everyday functioning and well-being.

Sensation-Seeking

The trait of pursuing thrilling and exciting experiences, possibly involving physical, social, or financial risk.

Antisocial Behaviors

Actions that violate societal norms and laws, displaying a lack of consideration for others and potentially causing damage to society or relationships.

Antagonist Drugs

Drugs that block or change the effects of an addictive drug, reducing desire for the drug.