The effects of the new chain-weighted GDP figures include all of the following except
A) reduce the growth in total real investment.
B) increase the growth in total real investment.
C) correct the weights assigned to GDP components whose prices have risen.
D) show that the economy grew more during the 1980s than previously thought.
E) show that the economy grew less during the 1990s than previously thought.

Question

Quizplus · Accepted Answer

The new chain-weighted GDP figures are designed to provide a more accurate measure of economic growth by adjusting the weights of GDP components to reflect current prices, thus correcting for changes in the price levels of different sectors of the economy. This method tends to reduce the growth rate in total real investment because it accounts for changes in relative prices, rather than simply summing nominal values. Therefore, it does not inherently increase the growth in total real investment.

The Effects of the New Chain-Weighted GDP Figures Include All