To calculate the change in chain-weighted real GDP from one year to the next,we use
A) first-year prices.
B) second-year prices.
C) the percentage change in prices from the first year to the second.
D) average prices over the two years.
E) base-year prices.

Question

Quizplus · Accepted Answer

Chain-weighted real GDP uses average prices over the two years to account for changes in the composition of goods and services and their relative prices.

To Calculate the Change in Chain-Weighted Real GDP from One