In 2001, in Calculation of the Implicit Price Index, Statistics

Multiple Choice

In 2001, in calculation of the implicit price index, Statistics Canada switched from fixed based price index method to a chain-weighted index.The main reason for this was:

A) to avoid complex calculation of the fixed based price index.
B) to better represent the weight of each category especially the information technology sector.
C) to avoid underestimation of the GDP growth, due to the rapid growth in the information technology sector.
D) to be able to use the relatively constant weights for the items in the GDP year after year.