The chain-weighted measure of real GDP uses prices from:
A) a constant base year
B) a constantly changing base year
C) a base year that changes every five years
D) a base year that changes every ten years
E) None of these answers are correct.

Question

Quizplus · Accepted Answer

The chain-weighted measure of real GDP uses prices from a constantly changing base year. This is done to account for changes in the relative prices of goods and services over time, and thus provide a more accurate measure of economic growth. The specific base year used for computing the weights in the chain-weighted index changes each year, based on the relative prices of goods and services in that year compared to the previous year.

The Chain-Weighted Measure of Real GDP Uses Prices From