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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

Correct Answer:

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