When the BEA Calculates Real GDP Using the Average of Prices

question 143

Multiple Choice

When the BEA calculates real GDP using the average of prices in the current year and the year preceding it,and this average changes from year to year,this is called calculating GDP using

• A)chained-weighted prices.
• B)fixed-weight prices.
• C)current-year prices.
• D)fixed base-year prices.

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Definitions:

Rational Ethics

A branch of ethics focused on determining right and wrong actions based on reasoning and logical analysis rather than on emotions or social customs.

Philosophical Theory

A set of ideas or principles that form the basis of a philosophical system, addressing fundamental questions about life, the universe, and everything.

Human Reason

The faculty of the mind which forms the basis for logical thought, understanding, and decision-making.

Neoliberalism

Neoliberalism is an economic and political ideology that emphasizes free-market capitalism, deregulation, and reduction in government spending.