Chained dollars is a method for calculating changes in real GDP using an early base year and a late base year. It takes into account changes in the composition and prices of goods and services over time, resulting in a more accurate measure of economic growth. It is not related to bank reserves, intermediate goods, or converting real to nominal GDP.

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Chained Dollars Is

Question 174

Multiple Choice

Chained dollars is:

A) money that banks are required to keep in their vaults to back deposits.
B) the measure of the value of intermediate goods.
C) a method for calculating changes in real GDP using an early base year and a late base year.
D) a method used to convert real to nominal GDP.

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