The Chain-weighted index links each year to the previous year through:
A)the use of nominal GDPs in prior years.
B)the use of both the prior year prices and current year prices.
C)the use of real GDPs in prior years.
D)the use of base year implicit price index.

Question

Quizplus · Accepted Answer

The chain-weighted index uses both the prior year prices and current year prices to calculate growth rates, allowing for a more accurate reflection of changes in the economy by accounting for shifts in consumption patterns and relative prices.

The Chain-Weighted Index Links Each Year to the Previous Year