The base year refers to the year whose _______ are used to calculate _______ for all years.
A) prices; real GDP
B) levels of output; real GDP
C) prices; nominal GDP
D) levels of output; nominal GDP

Question

Quizplus · Accepted Answer

The base year is the year used as a reference point for comparing statistical data in all subsequent years. In the calculation of real GDP, the base year's prices are used to adjust for inflation and obtain an accurate measure of economic growth over time. Therefore, the correct answer is A.

The Base Year Refers to the Year Whose _______ Are