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:

Nonprobate

Refers to assets or property that will pass to survivors by means other than a will, such as through trust or designated beneficiary.

Ambulatory

A term pertaining to the ability of a will to be changed by a testator.

Bequest

The act of giving property or money to someone else after one's death through a will.

Devise

In law, a gift of real property by will.