Using prices from 2009, GDP grew 10 percent between 2009 and 2010; using prices from 2010, GDP grew 8 percent between 2009 and 2010.For its link back to the base year, the BEA will use ________ percent as the growth in real GDP between 2009 and 2010.
A) 10
B) 8
C) 2
D) 18
E) 9

Question

Quizplus · Accepted Answer

The BEA uses a chain-weighted method to calculate real GDP, which averages the growth rates using different base years. The average of 10% and 8% is 9%.

Using Prices from 2009, GDP Grew 10 Percent Between 2009