When Calculating Real GDP,the Reference Base Year

question 54

Multiple Choice

When calculating real GDP,the reference base year

• A)allows us to account for changes in GNP compared to GDP.
• B)always reduces the value of GDP compared to GNP.
• C)allows us to calculate the value of the goods and services in terms of prices of that base year.
• D)usually increases the value of GNP compared to GDP.
• E)allows us to increase the value of goods and services.

---

Definitions:

Valid

The state of being logically or legally sound; having force, or binding force; effectively supporting a specified point or claim.

Variable

A characteristic or attribute that can vary or be changed, often used in research to measure or test hypotheses.

Indicators

Quantitative or qualitative factors that provide a measure of some aspect of a society's condition or progress, often used in research and policy analysis.

Well-Being

A state of health, happiness, and prosperity.