{"id":201818,"date":"2025-03-15T23:11:28","date_gmt":"2025-03-15T23:11:28","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=201818"},"modified":"2025-03-15T23:11:30","modified_gmt":"2025-03-15T23:11:30","slug":"real-gdp-in-2010-is-10-trillion","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/15\/real-gdp-in-2010-is-10-trillion\/","title":{"rendered":"Real GDP in 2010 is $10 trillion"},"content":{"rendered":"\n

Real GDP in 2010 is $10 trillion. Between 2010 and 2011, using 2010 prices, GDP grew 3 percent and using 2011 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2011 is __<\/em><\/strong> trillion.<\/p>\n\n\n\n

A) $10.5 <\/p>\n\n\n\n

B) $11 <\/p>\n\n\n\n

C) $10.1 <\/p>\n\n\n\n

D) $12.72<\/p>\n\n\n\n

The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n

The correct answer is B) $11 trillion<\/strong>.<\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

To calculate real GDP in 2011 using the chain-weighted output index method, we need to use the formula for chain-weighted GDP:<\/p>\n\n\n\n

[
\\text{Real GDP in 2011} = \\text{Real GDP in 2010} \\times \\left( 1 + \\text{Percentage Change using 2010 Prices} \\right) \\times \\left( 1 + \\text{Percentage Change using 2011 Prices} \\right)
]<\/p>\n\n\n\n

Here’s the breakdown of each component:<\/p>\n\n\n\n

    \n
  • Real GDP in 2010<\/strong>: Given as $10 trillion.<\/li>\n\n\n\n
  • Percentage change using 2010 prices<\/strong>: Real GDP grew by 3% between 2010 and 2011, measured using 2010 prices.<\/li>\n\n\n\n
  • Percentage change using 2011 prices<\/strong>: Real GDP grew by 7% between 2010 and 2011, measured using 2011 prices.<\/li>\n<\/ul>\n\n\n\n

    First, we calculate the growth rate in real GDP using 2010 prices:<\/p>\n\n\n\n

    [
    \\text{Growth using 2010 prices} = 1 + 3\\% = 1 + 0.03 = 1.03
    ]<\/p>\n\n\n\n

    Next, we calculate the growth rate using 2011 prices:<\/p>\n\n\n\n

    [
    \\text{Growth using 2011 prices} = 1 + 7\\% = 1 + 0.07 = 1.07
    ]<\/p>\n\n\n\n

    Now, using the chain-weighted method, we multiply the real GDP in 2010 by both growth factors:<\/p>\n\n\n\n

    [
    \\text{Real GDP in 2011} = 10 \\times 1.03 \\times 1.07
    ]<\/p>\n\n\n\n

    [
    \\text{Real GDP in 2011} = 10 \\times 1.1021 = 11.021 \\text{ trillion}
    ]<\/p>\n\n\n\n

    Rounding to the nearest trillion, the result is approximately $11 trillion<\/strong>.<\/p>\n\n\n\n

    Thus, the correct answer is B) $11 trillion<\/strong>. This method allows for a more accurate calculation of real GDP by incorporating both years’ price levels, avoiding potential biases from using only one year’s prices.<\/p>\n","protected":false},"excerpt":{"rendered":"

    Real GDP in 2010 is $10 trillion. Between 2010 and 2011, using 2010 prices, GDP grew 3 percent and using 2011 prices real GDP grew 7 percent. Using the chain-weighted output index method, real GDP in 2011 is __ trillion. A) $10.5 B) $11 C) $10.1 D) $12.72 The correct answer and explanation is : […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-201818","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/201818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=201818"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/201818\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=201818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=201818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=201818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}