Using the chained-dollar method to calculate real GDP, real GDP is calculated by
A) valuing the current output at last year's real GDP prices.
B) valuing the current output at current year prices.
C) averaging the growth of output from one year to the next when the growth rates are calculated using this year's prices and using last year's prices.
D) either A or C, depending which gives the larger value for real GDP.
E) averaging the value of current output valued using base year prices and current output valued using current year prices.
C
You might also like to view...
Regarding IBFs, which of the following is correct?
A) not subject to reserve requirements B) not subject to interest rate regulations C) were created to permit U.S. banking offices to compete with offshore banks without having to use an offshore banking office D) All of the above.
Labor resources include:
a. skilled workers but not unskilled workers. b. unskilled workers but not skilled workers. c. a robot. d. education and training of workers. e. coffee breaks.