Fill in the Blank QuestionFill in the blank question. GDP uses prices from a base year also referred to as constant prices.

GDP uses prices from a base year also referred to as "real prices."

In the context of economics, Gross Domestic Product (GDP) can be calculated in two primary ways: nominal GDP and real GDP. Nominal GDP is measured using current prices, without adjustment for inflation, whereas real GDP adjusts for changes in price levels by using prices from a base year, which are often referred to as constant prices. This adjustment allows economists to compare the economic output of different years while eliminating the effects of inflation or deflation, providing a more accurate reflection of an economy's size and how it is growing over time. Hence, using the term "real prices" is apt as it denotes the constant pricing approach adopted in real GDP calculations.