A Disadvantage of Chain-Weighting Is That

question 36

Multiple Choice

A disadvantage of chain-weighting is that

• A)past inflation rates change whenever the base year changes.
• B)past growth rates of real GDP change whenever the base year changes.
• C)it causes output growth to slow.
• D)the components of real GDP don't sum to real GDP.

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Definitions:

Unskilled Workers

Individuals who perform jobs that require limited or no specialized skills or training.

Workers Specialize

When workers focus on a narrow set of tasks or acquire specialized skills, leading to increased efficiency and productivity.

Command System

A type of economic system where production, investment, prices, and incomes are determined centrally by a government.

Laissez-Faire Capitalism

An economic system where private parties are free to conduct business transactions with minimal government intervention or regulation.