Real GDP in 2012 is $10 trillion.Between 2012 and 2013,using 2012 prices,GDP grew 3 percent and using 2013 prices real GDP grew 7 percent.Using the chain-weighted output index method,real GDP in 2013 is ________ trillion.

Question

Quizplus · Accepted Answer

The chain-weighted output index method averages the growth rates using different base years. The average of 3% and 7% growth rates is 5%. Applying this to the 2012 GDP of $10 trillion gives $10.5 trillion for 2013.

Real GDP in 2012 Is $10 Trillion