The Chain- Weighted Output Index Method of Calculating Real GDP

question 60

Multiple Choice

The chain- weighted output index method of calculating real GDP compares

• A) compares the quantities of goods produced in consecutive years using prices in both years and averaging the percentage changes in the value of output.
• B) prices at different points in time using a sample of goods that is representative of goods purchased by households.
• C) quantities produced in different years with the prices that prevailed during the year in which the output was produced.
• D) quantities produced in different years using prices from a year chosen as a reference period.

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Definitions:

Riding

An electoral district or division, particularly in countries like Canada, used in the context of parliamentary elections.

Habituation

A decrease in response to a stimulus after repeated exposure, demonstrating a basic form of learning or adaptation.

Neural Fatigue

A temporary decrease in neural efficiency, leading to a decline in cognitive or physical performance due to prolonged activity.

Stimulus

Anything in the external or internal environment that elicits a response from an organism.