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Introducing Concepts - Nominal GDP and Real GDP
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Problem 9
Introducing Concepts - Nominal GDP and Real GDP
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10. Introducing Economic Concepts / Introducing Concepts - Nominal GDP and Real GDP / Problem 2
Problem 2
How does the choice of base year affect the comparability of real GDP data over time?
A
It does not affect comparability as real GDP is always consistent regardless of the base year.
B
It affects comparability because the base year determines the population size used in calculations.
C
It affects comparability because the base year is used to calculate nominal GDP.
D
It affects the comparability because different base years can lead to different interpretations of economic growth.
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