Suppose We Calculate the Percent Change in Real GDP from Year

question 2

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 ________ percent.

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

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