A chain-weighted index A) calculates changes in prices by ...

[bcretired]

A chain-weighted index
 
  A) calculates changes in prices by using an average of base years from neighboring years to obtain a more accurate measure of real GDP growth.
  B) is used to understate the rate of inflation.
  C) is a useful tool for determining which fence to purchase.
  D) uses neighboring years' data to calculate changes in nominal GDP.

Question 2

Recall the Application. As the world price of wool decreased, the quantity of wool supplied by individual ranchers would ________, and the quantity supplied in the whole market would ________.
 
  A) decrease; increase B) increase; decrease C) increase; increase D) decrease; decrease

[Jmfn03]

Answer to Question 1

A

Answer to Question 2

D