If the Laspeyres Price Index for a Basket of Goods

question 21

Short Answer

If the Laspeyres price index for a basket of goods is 128 and the Paasche price index for the same basket of goods for the same time period is 119, which of the following is the value of the Fischer price index, the geometric mean of these two indices? $\begin{array}{|l|l|}\hline A&\text { 123.5}\\\hline B&\text { 9}\\\hline C&\text {123.42 }\\\hline D&\text {None of these choices are correct. }\\\hline \end{array}$

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy.

Persimmon Orchard

A Persimmon Orchard is a plantation or area specifically dedicated to growing persimmon trees, which bear the edible fruit known as persimmons.

Bushels

A unit of volume that is used primarily in the United States to measure quantities of agricultural products.

Profit

This is the financial gain obtained when the amount earned from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.