Which of the below listed options is(are)true?
A)Aggregate and simple prices indices differ in the number of prices being tracked at a given point in time.
B)Price indices are used to compare value in real dollars instead of actual dollars
C)An unweighted price index considers each commodity as equally important.
D)The Paasche price index considers consumption quantities in the year of interest.
E)All of the above are true.

Question

Quizplus · Accepted Answer

A) This is true as the aggregate price index tracks a larger number of prices than a simple price index.
B) This is true as price indices adjust for inflation and changes in purchasing power.
C) This is true as an unweighted price index gives equal importance to each commodity regardless of their share in the total expenditure.
D) This is true as the Paasche price index uses consumption quantities in the base year and the year of interest. 
Therefore, all options are true.

Which of the Below Listed Options Is(are)true