The ________ index is a weighted aggregate price index that uses the base period quantities as weights in all succeeding time periods.
A)Paasche
B)First-order autocorrelation
C)Laspeyres
D)Cyclical (seasonal)

Question

Quizplus · Accepted Answer

The Laspeyres index uses fixed base period quantities as weights in all succeeding time periods, making it a weighted aggregate price index. It is advantageous when the base period is representative of the overall market, but it may overestimate inflation if changes in the quality of goods are not accounted for. The Paasche index, on the other hand, uses current period quantities as weights and the First-order autocorrelation and Cyclical (seasonal) are not types of aggregate price indexes.

The ________ Index Is a Weighted Aggregate Price Index That