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Suppose we switch the base year from 2000 to 2008. This change in the base year will cause
Anominal GDP in every year to increase.
Bnominal GDP in every year to decrease.
Cboth nominal and real GDP in every year to decrease.
Dreal GDP in every year to decrease.Enone of the above

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Answer:

Option E : None of the above

Explanation:

Change in base year from 2000 to 2008 causes an INCREASE in the REAL GDP but change in base year does NOT AFFECT the nominal GDP.

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