Introduction of the Chain Fisher Measure of Real GDP
Introduction of the Chain Fisher Measure of Real GDP
Introduction of the Chain Fisher Measure of Real GDP
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What is <strong>the</strong> Economic<br />
Significance <strong>of</strong> <strong>the</strong> Change?<br />
• The Laspeyres measure overstates<br />
economic growth when:<br />
– some prices are declining monotonically<br />
relative to o<strong>the</strong>r prices in <strong>the</strong> economy (ICT)<br />
– <strong>the</strong>re is an abrupt shift in relative prices (Crude<br />
petroleum)