Suppose 2009 Is the Base Year

question 295

Multiple Choice

Suppose 2009 is the base year. From 2009 to 2010, the price index increases from 100 to 102.5. If nominal Gross Domestic Product (GDP) is $2,800 in 2010, then the real Gross Domestic Product (GDP) in 2010 is

• A) $2,700.
• B) $2,800.
• C) $2,732.
• D) $2,870.

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