To calculate the change in chain-weighted real GDP from one year to the next, we use
A)first-year prices.
B)base-year prices.
C)second-year prices.
D)the percentage change in prices from the first year to the second.
E)average prices over the two years.

Question

Quizplus · Accepted Answer

Chain-weighted real GDP calculations use the average prices over two years to adjust for inflation and provide a more accurate measure of real economic growth by mitigating the effects of price level changes.

To Calculate the Change in Chain-Weighted Real GDP from One