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...

Q19

Extracted 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