A Chain-Weighted Measure of Real GDP Is an Improvement Over

question 44

Multiple Choice

A chain-weighted measure of real GDP is an improvement over traditional measures because the prices used to compute real GDP are:

• A) never very out of date.
• B) always from the same base year.
• C) imputed.
• D) chained to the CPI.

---

Definitions:

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the balance doesn't merely grow; it grows at an increasing rate.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Loan

Money that is borrowed, typically from a bank or financial institution, that is expected to be paid back with interest.

Compounded Monthly

The process of adding interest to the principal sum of a loan or deposit on a monthly basis.