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, providing a more accurate measure of real GDP growth.

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