A price index commonly has an expression base of 1000 because Select one: a. prices in the basket being measured must add up to $1000. b. that allows comparisons with other price indexes. c. that is the international standard. d. 1000 is a convenient number to use in calculations

A price index commonly has an expression base of 1000 because Select one: a. prices in the basket being measured must add up to $1000. b. that allows comparisons with other price indexes. c. that is the international standard. d. 1000 is a convenient number to use in calculations

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 6SCQ: The Consumer Price Index is subject to the substitution bias and me quality/new goods bias. Are the...

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Question

A price index commonly has an expression base of 1000 because

Select one:

prices in the basket being measured must add up to $1000.

that allows comparisons with other price indexes.

that is the international standard.

1000 is a convenient number to use in calculations.

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Hello! Can someone please help me discuss the topic Consumer Price Index? I need to discuss its definition, formula, and sample computation/ problem. Can you please help me? I do not have any knowledge about the topic, since it is my first time hearing about it. Thank you! Your efforts are very much appreciated!