Question

A method for calculating price changes that takes an average of price changes using base years from consecutive years produces a A. ​value-added index. B. ​chain-weighted index. C. ​consumer-pricing index. D. ​import-weighted index.

Answer 1

Answer:

B. Chain weighted Index

Explanation:

Chain weighted index is a technique that measures changes in price and spending patterns of individuals and economy. It is an alternative form to the traditional consumer price index. It is used in calculating changes in price using average price from base year gotten from consecutive years. The chain weighted index puts products substitutions and other factors that affects spending made by consumers into consideration. Chain weighted index helps in estimating the real GDP.