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

question 258

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

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Definitions:

Free Trade

An economic policy that allows imports and exports among member countries with no or low tariffs, quotas, or other barriers to trade.

Domestic Production

The manufacture of goods within a country’s borders as opposed to importing goods from other countries.

Domestic Price

The price of goods or services within a country's borders, differing from global or international prices due to factors like tariffs, taxes, and demand-supply dynamics in the local market.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers to trade.