The base year is 2005, and the GDP price index in 2004 is 92.0. This implies that the:
A) Output in 2005 was higher than in 2004
B) Prices in 2005 were higher than in 2004
C) Output in 2005 was lower than in 2004
D) Prices in 2005 were lower than in 2004

Question

Quizplus · Accepted Answer

The GDP price index of 92.0 in 2004 indicates that prices were lower than the base year (2005), meaning prices in 2005 were higher than in 2004.

The Base Year Is 2005, and the GDP Price Index