In 2001, in calculation of the implicit price index, Statistics Canada switched from fixed based price index method to a chain-weighted index.The main reason for this was:
A) to avoid complex calculation of the fixed based price index.
B) to better represent the weight of each category especially the information technology sector.
C) to avoid underestimation of the GDP growth, due to the rapid growth in the information technology sector.
D) to be able to use the relatively constant weights for the items in the GDP year after year.
Correct Answer:
Verified
Q67: The GDP tends to
A)overstate economic welfare because
Q109: If real GDP in a particular year
Q157: Q158: (GDP figures are in billions of dollars.) Q159: (GDP figures are in billions of dollars.) Q161: Some of the production of an economy Q163: GDP tends to underestimate the productive activity Q165: The gross domestic product of Canada measures Q166: Environmental pollution is accounted for in: Q197: GDP tends to overstate economic well-being because
A)GDP.
B)DI.
C)PI.
D)None of
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