Suppose That G1 Represents the Ratio of Year 2 GDP $(g 1+g 2) / 2$

question 39

Multiple Choice

Suppose that g1 represents the ratio of year 2 GDP to year 1 GDP, both valued at year 1 prices. Suppose that g2 represents the ratio of year 2 GDP to year 1 GDP, both valued at year 2 prices. The ratio of chain-weighted year 2 GDP to chain-weighted year 1 GDP equals

• A) \( (g 1+g 2) / 2 \)
• B) \( \left(g_{1} \times g_{2}\right) / 2 \)
• C) \( \left(\sqrt{g_{1}}+\sqrt{g_{2}}\right) / 2 \)
• D) \( \sqrt{g_{1} \times g_{2}} \)
• E) \( \sqrt{g_{1} / g_{1}} \)

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Definitions:

Single Market Index

An index that measures the performance of a specific market segment or region.

Nonsystematic Risk

This type of risk is unique to a specific company or industry and can be reduced through diversification.

Book-To-Market Ratio

A financial valuation metric comparing a company's book value to its market value, often used to identify undervalued stocks.

Industrial Production

A measure of the output of the industrial sector of the economy, encompassing manufacturing, mining, and utilities.