Which of the Following Is NOT True of Price Indexes

question 76

Multiple Choice

Which of the following is NOT true of price indexes?

• A) They show changes in the general level of prices.
• B) They are used to estimate the rate of inflation or deflation.
• C) They are used to convert nominal values to real values, so comparisons can be made across time.
• D) They are used to compute the growth rate of real output in the economy.

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Definitions:

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Phrenologist

A practitioner of phrenology, a now-discredited theory that linked the shape of an individual's skull with their personality traits and mental abilities.

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