In the Base Year

question 106

Multiple Choice

In the base year:

• A) nominal and real GDP are equal by definition.
• B) nominal GDP is always larger than real GDP because prices are held constant.
• C) real GDP is always larger than nominal GDP because prices are held constant.
• D) real GDP will only be larger than nominal GDP if prices increased in the base year.

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Independent Variable

A variable in research that is manipulated or categorized to observe its effect on a dependent variable.

First Quartile

The value below which 25% of the data falls.

Ages of Retirees

Statistical data referring to the range, mean, or distribution of ages at which individuals retire from their professional careers.