Government economists have adopted the _____ method of calculating the change in real GDP, which averages the GDP growth rate according to both an early base year and a late base year.
A) cost indexation
B) straight-line depreciation
C) chain-linking
D) fixed base year

Question

Quizplus · Accepted Answer

Chain-linking is the method of calculating the change in real GDP that averages the GDP growth rate according to both an early base year and a late base year. This method is used by government economists to provide a more accurate measure of economic growth and to account for changes in the composition of the economy over time.

Government Economists Have Adopted the _____ Method of Calculating the Change