Suppose We Calculate the Percent Change in Real GDP from Year

question 39

Multiple Choice

Suppose we calculate the percent change in real GDP from year 1 to year 2 using both the Laspeyres and the Paasche indices. With the Laspeyres index we get 12 percent and with the Paasche index we get 9 percent. The chain-weighted growth of real GDP is:

• A) 1.5 percent
• B) 9.75 percent
• C) 1.33 percent
• D) 9.5 percent
• E) 10.5 percent

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Definitions:

Extinction

In psychology, the diminishing of a conditioned response, typically when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Repeated Pairings

A concept from behavioral psychology where repeated association of two stimuli results in the learning or conditioning of a response.

Prior Linking

The process of establishing a connection or association between concepts or items in memory before they are encountered again, facilitating recall or recognition.

Masked Branding

A marketing strategy where a brand deliberately conceals its direct association with a product or service to appeal to a different consumer segment or to test new markets.