The new chain-weighted measures of real GDP are an improvement over traditional measures because the prices used to compute real GDP are:
A) never far out of date.
B) always from the same base year.
C) imputed.
D) chained to the CPI.

Question

Quizplus · Accepted Answer

The chain-weighted measures of real GDP use prices that are continuously updated, so they are never far out of date. This approach provides a more accurate reflection of the economy's size and how it is changing over time compared to traditional measures that use a fixed base year.

The New Chain-Weighted Measures of Real GDP Are an Improvement