MCQOPTIONS
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| 1. |
The base year method of calculating real GDP compared |
| A. | quantities produced in different years using prices from a year chosen as a reference period |
| B. | quantities produced in different years with the prices that prevailed during the year in which the output was produced |
| C. | the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output |
| D. | prices at different points in time using a sample of goods that is representative of goods purchased by households |
| E. | None of the above |
| Answer» B. quantities produced in different years with the prices that prevailed during the year in which the output was produced | |