Using prices from 2012,GDP grew 10 percent between 2012 and 2013;using prices from 2013,GDP grew 8 percent between 2012 and 2013.For its link back to the base year,the BEA will use ________ percent as the growth in real GDP between 2012 and 2013.
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 growth, which averages the growth rates using prices from both years. Thus, the average of 10% and 8% is 9%.

Using Prices from 2012,GDP Grew 10 Percent Between 2012 and 2013;using