To Convert a Current Price of a Product to Its

question 83

Multiple Choice

To convert a current price of a product to its price in the past,we would take the current price of a product and

• A) divide by the current price index and then add the previous price index.
• B) multiply by the ratio of the current price index to the previous price index.
• C) multiply by the ratio of the previous price index to the current price index.
• D) divide by the ratio of the previous price index to the current price index.
• E) average the chain-weighted consumer price index (CPI)and the traditional CPI of the previous year,and then multiply the current price by the average of the two.

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