Economic Measurement

Why should Georgia’s chained-dollar industry GDP levels not simply be added outside the reference year?

• All industry levels are already percentages
• Real industry output is always excluded from state GDP
• Chained dollars measure only state government revenue
• Chain weighting generally makes the components nonadditive

Which BEA measure can be added across industries to explain Georgia’s real GDP growth?

• Chained-dollar industry levels in every year
• Industry employment totals expressed as dollars
• Industry contributions to growth
• Each industry’s separate growth rate without weights

What price issue is not fully resolved by comparing states’ real GDP?

• The use of a stated reference year
• Price changes over time in the output measure
• The distinction between nominal and real units
• Geographic price differences in locally sold output

What does subtracting Georgia’s real GDP from its nominal GDP fail to provide by itself?

• A comparison involving two accounting measures
• An arithmetic result based on reported values
• A valid standalone inflation rate
• A numerical difference between the two levels

What is wrong with comparing Georgia nominal GDP directly with another state’s real GDP for the same year?

• Their population totals must be equal
• Their industry lists must contain no services
• Their price bases are inconsistent
• Their geographic units must be identical counties