Which of the following is a correct statement about the difference between chain-weighted and fixed-weight real GDP growth rates? a) Chain-weighted growth rates are more accurate if prices are rising slowly. Fixed-weight growth rates are more accurate when prices are rising rapidly. b) Chain-weighted growth rates depend on the choice of base year. Fixed-weight growth rates do not. c) Chain-weighted growth rates tend to be larger, the earlier is the base year. This is not the case for fixed-weight growth rates. d) Fixed-weighted growth rates tend to decline when the base year is updated. Chain-weighted growth rates do not.
Which of the following is a correct statement about the difference between chain-weighted and fixed-weight real GDP growth rates? a) Chain-weighted growth rates are more accurate if prices are rising slowly. Fixed-weight growth rates are more accurate when prices are rising rapidly. b) Chain-weighted growth rates depend on the choice of base year. Fixed-weight growth rates do not. c) Chain-weighted growth rates tend to be larger, the earlier is the base year. This is not the case for fixed-weight growth rates. d) Fixed-weighted growth rates tend to decline when the base year is updated. Chain-weighted growth rates do not.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following is a correct statement about the difference between chain-weighted and fixed-weight real GDP growth rates?
a) Chain-weighted growth rates are more accurate if prices are rising slowly. Fixed-weight growth rates are more accurate when prices are rising rapidly.
b) Chain-weighted growth rates depend on the choice of base year. Fixed-weight growth rates do not.
c) Chain-weighted growth rates tend to be larger, the earlier is the base year. This is not the case for fixed-weight growth rates.
d) Fixed-weighted growth rates tend to decline when the base year is updated. Chain-weighted growth rates do not.
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