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