The chain- weighted output index

Question

Quizplus · Accepted Answer

The chain-weighted output index uses prices for the current year and the previous year to calculate growth in real GDP. This helps to account for changes in relative prices and better reflects the changing composition of the economy over time. It is considered a more accurate way to measure growth in real GDP than the traditional fixed-weighted index. The index does not need to be calculated only every other year. There is no evidence that it has been replaced by the "nominal-to-real" index.

The Chain- Weighted Output Index