i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices.
ii. The concept of real income is sometimes called deflated income.
iii. Purchasing power of the dollar is the same as the CPI.
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Question

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. 
ii. The concept of real income is sometimes called deflated income. 
iii. Purchasing power of the dollar is the same as the CPI.
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Quizplus · Accepted Answer

An index is used to compare changes in different variables, and real income is often referred to as deflated income. However, the purchasing power of the dollar is not the same as the CPI; it is inversely related to it.

I an Index Is a Convenient Way of Comparing Changes