Suppose Government Officials Decide to Change the Base Year to a More

Multiple Choice

Suppose government officials decide to change the base year to a more recent year . A change in the base year such as this will cause:

A) nominal GDP in every year to increase.
B) nominal GDP in every year to decrease.
C) both nominal and real GDP in every year to decrease.
D) real GDP in every year to decrease.
E) None of the above.