Calculating constant dollar GDP using a chain-weighted index.?

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Calculating constant dollar GDP using a chain-weighted index.?

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hah I believe you’re in Somers class, I’ve been looking for answers on this as well. I used the price from year one and multiplied it by the quantity from year two (and three), however my total differs from what he gave us on the solutions sheet, since I get: Constant Dollar GDP Year 2 = 19,350 (he says 19,360) Year 3 = 20,305 (his 20,328) ————– I finally figured it out! You have to take the average price of Year 1 and 2: [390+410]/2= 400 [40+60]/2= 50 [5+7]/2= 6 Then multiply them by the quantities in Year 2 400×22 50×138 6×1050 = 22,000 afterward you do the same for in Year 1: 400×20 50×120 6×1000 =20,000 then… ([22,000-20,000) / 20,000] + 1 = 1.1 Now you take the current base year GDP=17,600 and multiply it by 1.1 =19.

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