A Price Index Can Fall from One Year to the Next

question 13

Multiple Choice

A price index can fall from one year to the next:

• A)​even when nominal GDP falls.
• B)​even when real GDP falls.
• C)​even when some individual good's prices rise.
• D)​in any of the above circumstances.

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Definitions:

Cell Phone

A portable electronic device that enables users to make voice calls, send text messages, and access the internet.

Accept

Agreement to the terms of a proposal or offer, thereby creating a binding contract between the parties involved.

Mail Survey

A research method in which questionnaires are sent through postal mail to collect data from respondents.

Prizes

Rewards given for a particular achievement, competition, or lottery, often in the form of money, goods, or titles.