2 A price index equal to 90 in a given year ■

a. indicates that prices were lower than prices in the base year.
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b. indicates that the year in question was a year previous to the base year.

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c. indicates that prices were 10 percent higher than prices in the base year.
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d. is inaccurate—price indexes cannot be lower than 100.
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e. indicates that real GDP was lower than GDP in the base year.