Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the ________ method of calculating real GDP.
A) base-year
B) moving-base-year
C) chain-weighted output index
D) fixed quantities/variable prices

Question

Quizplus · Accepted Answer

The chain-weighted output index method involves valuing the quantities of goods produced in consecutive years using prices from both years and then averaging the percentage changes. This approach helps to more accurately reflect the real growth in GDP by adjusting for changes in the price level and in the composition of goods and services over time.

Valuing the Quantities of Goods Produced in Consecutive Years Using