Economists Use the Price Index to Eliminate Year-To-Year Changes in GDP

question 6

Multiple Choice

Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in:

• A)the exchange rate.
• B)the unemployment rate.
• C)fiscal spending.
• D)consumer demand.
• E)the price level.

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Definitions:

Pocahontas

A Native American woman notable for her association with the colonial settlement at Jamestown, Virginia, and her role in fostering peace between English settlers and Native Americans.

Dysentery

An infectious disease characterized by severe diarrhea with blood and mucus, often caused by bacteria or parasites.

Tobacco Cultivation

The agricultural practice of growing and harvesting tobacco plants, historically significant to the economy of several US colonies.

Virginia Company

The Virginia Company was an English joint-stock company established in the early 17th century that founded and provided early governance for the Jamestown settlement in North America.