Chain-weighted GDP deflator inflation differs from GDP deflation inflation because:
A)it uses different goods in its calculation.
B)it uses two different base years to get the quantities used to calculate the index.
C)it uses a constant set of prices every year.
D)it uses two different base years to get the prices used to calculate the index.

Question

Quizplus · Accepted Answer

Chain-weighted GDP deflator inflation uses two different base years to get the prices used to calculate the index, while GDP deflator inflation uses a constant set of prices every year. The use of different base years in chain-weighted calculations allows for a more accurate representation of changes in prices over time.

Chain-Weighted GDP Deflator Inflation Differs from GDP Deflation Inflation Because