In the Base Year

question 106

Multiple Choice

In the base year:

• A) nominal and real GDP are equal by definition.
• B) nominal GDP is always larger than real GDP because prices are held constant.
• C) real GDP is always larger than nominal GDP because prices are held constant.
• D) real GDP will only be larger than nominal GDP if prices increased in the base year.

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Definitions:

Aymara Indians

An indigenous group primarily located in the Andes region of South America, known for their rich cultural traditions and linguistic heritage.

Leveling Mechanisms

Practices and processes in societies that function to reduce inequality and distribute wealth and power more equally among members.

Collective Well-Being

The health, happiness, and prosperity of a group considered collectively, rather than the individual well-being of its members.

Culture

A complex whole which includes knowledge, belief, art, morals, law, custom, and any other capabilities and habits acquired by humans as members of society.