Suppose that this year's nominal GDP is $1.6 trillion. To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level five years ago. Using that index, we find that this year's real GDP is $1.5 trillion. Given those numbers, we can conclude that the current value of the indexiv (Click to select) lower than 100 still 100 higher than 100
Suppose that this year's nominal GDP is $1.6 trillion. To account for the effects of inflation, we construct a price-level index in which an index value of 100 represents the price level five years ago. Using that index, we find that this year's real GDP is $1.5 trillion. Given those numbers, we can conclude that the current value of the indexiv (Click to select) lower than 100 still 100 higher than 100
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q19
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Suppose that this year's nominal GDP is $1.6 trillion. To account for the effects of inflation, we construct a price-level index in which an
index value of 100 represents the price level five years ago. Using that index, we find that this year's real GDP is $1.5 trillion.
Given those numbers, we can conclude that the current value of the index i v (Click to select)
lower than 100
still 100
higher than 100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffe6088a7-b04f-4022-976a-52567f5d5e15%2F66b3cf85-9b6c-452f-8b91-933c9c242778%2Fjex22wr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:19
Suppose that this year's nominal GDP is $1.6 trillion. To account for the effects of inflation, we construct a price-level index in which an
index value of 100 represents the price level five years ago. Using that index, we find that this year's real GDP is $1.5 trillion.
Given those numbers, we can conclude that the current value of the index i v (Click to select)
lower than 100
still 100
higher than 100
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