At 2017 prices, the value of production in 2018 was 6 percentage points higher than in 2017. At 2018 prices, the value of production in 2018 was 4 percentage points higher than in 2017. Using the chain-weighted output index, real GDP is ________ in 2018 than in 2017.

Question

Quizplus · Accepted Answer

The chain-weighted output index is an average of growth rates using different base years. Here, it averages the 6% increase at 2017 prices and the 4% increase at 2018 prices, resulting in a 5% increase.

At 2017 Prices, the Value of Production in 2018 Was