The Chain-Weighted Output Index Method of Measuring Real GDP Is

question 173

Multiple Choice

The chain-weighted output index method of measuring real GDP is based on

• A) using current prices rather than base year prices
• B) using the prices of two adjacent years to calculate the growth rate of real GDP.
• C) averaging the market value of the expenditures over a two year period and then comparing with a base period.
• D) averaging the nominal and real measures of GDP to come up with a more accurate figure.

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Definitions:

Yield Pricing

A strategy in price management where prices are adjusted based on demand to maximize revenue.

Differential Analysis

A financial technique used to evaluate decisions by examining the costs and benefits of alternative actions and their impacts on company finances.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle, thereby limiting throughput.

Manufacturing Machinery

Fixed assets involved in the production process, including machines and tools used to transform raw materials into finished products.