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A Variable-Weight Price Index

Question 44

Multiple Choice

A variable-weight price index


A) equals the value of current output at current prices divided by the value of current output at base-year prices.
B) equals the value of a fixed basket at current prices divided by the value of a fixed basket at base-year prices.
C) is used in the consumer price index.
D) is misleading because it cannot distinguish between nominal and real measures.

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