For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Construction of chain-weighted real GDP employs the technique of a
A) Hilfindahl index.
B) Fisher index.
C) Gini index.
D) Body mass index.

Question

For the following questions, suppose an economy produces only food and clothing, and that price and quantity data are given in the table below.

-Construction of chain-weighted real GDP employs the technique of a
A) Hilfindahl index. 
B) Fisher index. 
C) Gini index. 
D) Body mass index.

Quizplus · Accepted Answer

Chain-weighted real GDP employs the Fisher index, which is a method of calculating a weighted average of two periods' prices and quantities to adjust for inflation. The other options listed are not relevant to GDP calculation.

For the Following Questions, Suppose an Economy Produces Only Food