Real GDP in 2010 is $10 trillion. Between 2010 and 2011, using 2010 prices, GDP grew 3 percent and using 2011 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2011 is trillion.

Question

Quizplus · Accepted Answer

The chain-weighted output index method averages the growth rates using different base years. The average of 3% and 7% growth rates is 5%. Applying this to the 2010 GDP of $10 trillion gives $10.5 trillion for 2011.

Real GDP in 2010 Is $10 Trillion