29 A price index is a comparison of real GDP in one period relative to another. the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period. a ratio of real GDP to nominal GDP. the price of a market basket in a given year divided by the price of an identical market basket in a reference year.

GDP is the market value of goods and services produced within a given period of time.

Answered: price index is a comparison of real…

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter6: How Statisticians Measure Inflation

Section6.A: How Statisticians Measure Inflation

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A price index is

a comparison of real GDP in one period relative to another.
the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period.
a ratio of real GDP to nominal GDP.
the price of a market basket in a given year divided by the price of an identical market basket in a reference year.

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