An inflation measure that adjusts the weights from year to year in calculating a price index is known as a(an) _____

Question

Quizplus · Accepted Answer

A chain-weighted system adjusts the weights used in calculating a price index from year to year, making it a more accurate measure of inflation than a fixed-price weighting system. This is because a fixed-price weighting system uses the same weights for all years, which can lead to distortions in the measure of inflation when the relative prices of goods and services change over time.

An Inflation Measure That Adjusts the Weights from Year to Year