Problem
Suppose that you are comparing GDP in 2010 to GDP in 2022. Smartphones became much more commonplace after the first Iphone was introduced in 2007, and have since become much more popular and less expensive (holding quality constant). How would this affect the rate of GDP growth that is calculated using 2010 prices (Laspeyres index) as the base year versus 2022 prices (Paasche index) as the base year? Explain.