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.

---

Definitions:

Possessors

Individuals or entities that have control over or hold property, but do not necessarily own it.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Social Guests

Individuals who are invited to visit someone's home or attend a private function or gathering without any expectation of providing a service or receiving payment.

Licensees

Individuals or entities that are granted permission to do certain things by another’s leave, such as occupying or using someone’s property.