Valuing the Quantities of Goods Produced in Consecutive Years Using

question 21

Multiple Choice

Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the ________ method of calculating real GDP.

• A) base-year
• B) moving-base-year
• C) chain-weighted output index
• D) fixed quantities/variable prices

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Definitions:

IFRS

International Financial Reporting Standards, a set of global accounting standards for financial reporting.

GAAP

A set of widely followed rules and standards in financial reporting, termed Generally Accepted Accounting Principles.

Factoring Transaction

A financial arrangement where a business sells its accounts receivable to a third party at a discount to raise immediate capital.

Sales Returns

Transactions where customers return previously purchased merchandise for a refund or credit.