The chainlinking method of measuring the change in real GDP

The chain-linking method of measuring the change in real GDP uses the average between the GDP growth rate using an early base year and the GDP growth rate using:

a. 2000 as the base year.

b. 1975 as the base year.

c. a late base year.

Solution

Correct Answer:

C

It gives fair indication of the change in real GDP, when average of GDP growth rate by means of (using) early base year and by means of (using) late base year is calculated and used for further analysis.