The chain-weighted output index method of measuring real GDP is based on
A) using current prices rather than base year prices
B) using the prices of two adjacent years to calculate the growth rate of real GDP.
C) averaging the market value of the expenditures over a two year period and then comparing with a base period.
D) averaging the nominal and real measures of GDP to come up with a more accurate figure.

Question

Quizplus · Accepted Answer

The chain-weighted output index method of measuring real GDP is based on using the prices of two adjacent years to calculate the growth rate of real GDP. This method accounts for changes in relative prices over time and is considered a more accurate measure of real GDP than the traditional method of using base year prices.

The Chain-Weighted Output Index Method of Measuring Real GDP Is