Price indexes:
A) have little real world applicability.
B) are used solely by academics to explain abstract theories.
C) were developed to provide jobs for out-of-work statisticians during the Great Depression.
D) are used by government policymakers, businesses, workers, and households in their economic decision-making process.

Question

Quizplus · Accepted Answer

Price indexes are crucial tools in economic analysis and decision-making, used widely by government policymakers, businesses, workers, and households to track inflation, adjust salaries, set monetary policies, and make informed financial decisions. They are not limited to academic theories, nor were they created solely to provide employment for statisticians during the Great Depression. Their real-world applicability is significant across various sectors of the economy.

Price Indexes