The GDP Price Index Equals

question 50

Multiple Choice

The GDP price index equals
I.nominal GDP divided by real GDP multiplied by 100.
Ii.a measure of the price level.
Iii.an average of current prices expressed as a percentage of base-year prices.

• A)i only
• B)ii and iii
• C)iii only
• D)i and ii
• E)i,ii,and iii

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Definitions:

Expected Return

The average return an investor anticipates on an investment which is uncertain, based on the probable returns.

States of Economy

The various conditions that can describe an economy, including growth, recession, depression, and recovery.

Probabilities

A measure of the likelihood that a certain event will occur, often expressed as a number between 0 and 1.

Stock Volatilities

Stock volatilities measure the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns, indicating the investment's risk.