Real GDP in 2017 is $10 trillion. Between 2017 and 2018, using 2017 prices, GDP grew 3 percent and using 2018 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2018 is ________ trillion.

Question

Quizplus · Accepted Answer

Chain-weighted output index method uses the prices of both years to calculate real GDP. So, real GDP in 2018 using chain-weighted output index method = (10 trillion * 1.03) * 1.07 = $10.5 trillion.

Real GDP in 2017 Is $10 Trillion