The chain-weighted output index
A) uses only the current year's prices to calculate growth in real GDP.
B) uses prices for the current year and the previous year to calculate growth in real GDP.
C) must be calculated only every other year.
D) is an inaccurate way to measure growth in real GDP and so has been replaced by the "nominal-to-real" index.

Question

Quizplus · Accepted Answer

The chain-weighted output index uses prices for both the current year and the previous year to calculate growth in real GDP, allowing for a more accurate reflection of economic changes by adjusting for price changes and inflation over time.

The Chain-Weighted Output Index