Chain-weighted price indices are constructed such that
A) prices in different economies can be directly compared with one another.
B) prices in different years can be directly compared with one another.
C) all years' levels of GDP are directly related to a base year level of GDP.
D) prices of one good can be directly compared with prices of other goods.

Question

Quizplus · Accepted Answer

Chain-weighted price indices adjust for changes in both the composition and prices of goods and services over time, allowing for more accurate comparisons of prices between different years. This is different from traditional price indices, which only take into account the prices of a fixed basket of goods and services in a base year, making it difficult to compare prices over time.

Chain-Weighted Price Indices Are Constructed Such That