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

question 37

Multiple Choice

To calculate the change in chain-weighted real GDP from one year to the next, we use

• A)first-year prices.
• B)base-year prices.
• C)second-year prices.
• D)the percentage change in prices from the first year to the second.
• E)average prices over the two years.

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Definitions:

Cost Behavior

The study of how specific costs change in relation to changes in a company's level of activity or volume of output.

Linear

Pertaining to or resembling a line; often used in mathematics to describe a relationship of direct proportionality.

Relevant Range

The range of activity within which the assumptions made about cost behavior are valid.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the volume of sales.