Which of the following is TRUE regarding the chain-weighted output index method?
I. It is the method used to measure the growth rate of nominal GDP.
II. It uses data from the current year and from the previous year.
III. It is a method of measuring the growth rate of real GDP.
A) I and II
B) II and III
C) I and III
D) I, II and III

Question

Quizplus · Accepted Answer

The chain-weighted output index method uses data from both the current and previous years to measure the growth rate of real GDP, not nominal GDP. This approach adjusts for changes in the price level and the mix of goods and services over time, providing a more accurate measure of economic growth.

Which of the Following Is TRUE Regarding the Chain-Weighted Output