Exercise Sheet 1 – Answers
What is the real GDP growth using year 1 as a base year?
What is real GDP growth if you use the chain weighted measure?
Refers to the value of an asset, service, or company that is not physically recorded in any
accounts but is implicit in the product, e.g., the opportunity cost of cash remaining in a
savings account and not invested. To be comprehensive, GDP must include some goods and
services that are not traded in the market place. Those components of the GDP are called
imputations. Examples include the services of owner-occupied housing, financial services
provided without charge, and the treatment of employer-provided health insurance. Rental
cost of a similar car can be used.