How To Calculate Chain-Weighted Real GDP

A detailed numerical example on how to calculate chain weighted real GDP and growth rate.
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[@jaimesonking4061]

I have an exam tomorrow on this, you literally saved my life mate

[@nerdgirlbee72]

Thank You! Online class doesn't explain this very well, and out of the other UA-cam videos on this subject... Yours is the BEST explanation!! Just seeing the information on this spreadsheet and the detailed description was top notch

[@mohammadpourheydarian5877]

A very nice explanation. Thank you.

[@ganeshrt7124]

Top-notch explanation

[@tulseluper7051]

Thank you!

[@locnguyenquy1868]

Thank you.

[@hamzakadmiri5571]

Life saving

[@samuelgreenberg3098]

Is it essentially just calculating the Fisher index and multiplying it by nominal GDP?

[@parladdgna]

what if the RGR comes out to be negative ? than you can't do Sqrt (D * E)

[@nelkboys]

Absolute value

[@yijunhua4335]

I don't understand why sqrt(D*E) represents the chain-weighted growth rate????why?

[@stephenstofka4452]

It's an average component of the multiplication product. If a rectangle is 2x4, the area is 8. The two sides that produce that area is √8

[@mohammadpourheydarian5877]

for year 2 we have 2 growth rates one the base year is the previous year and another the base year is the next year and he calculate the geometric mean of 2 rates as weighted mean average. The arithmetic mean of 4 and 9 is (4+9)/2=13/2=6.5 then 4+9 = 6.5 +6.5 = 13. The geometric mean of 4 and 9 is 6 meaning 4*9 = 6*6=36. Geometric mean of 4 and 9 is sqrt(4*9). The geometric mean of 4, 9, 2, 3 is the 4th root of (4*9*2*3). Good luck.

[@theminuteman6211]

mistyped sqrt(DxE) for Year 2

[@adamchi8180]

but the answer is correct

[@ryanxu6345]

useless no elaboration

[@justingurke6295]

Thank you!