When studying economic data,and when comparing the magnitude of changes in variables with different scales it is best to
A)compare the absolute data on each variable.
B)compare the relative data on each variable.
C)express each variable as an index number.
D)express each variable as a logarithmic number.
E)use only time-series data.

Question

Quizplus · Accepted Answer

Expressing each variable as an index number allows for easy comparison of changes in variables with different scales by normalizing the data to a common base.

When Studying Economic Data,and When Comparing the Magnitude of Changes