The Concept of a Price Index Is That It Is

question 65

Multiple Choice

The concept of a price index is that it is a(n)

• A) measure of how the items included in the typical basket of goods have changed over time; it also includes price changes over time.
• B) measure of how the items included in the typical basket of goods have changed over time,while holding price changes constant.
• C) measure of how the prices included in the typical basket of goods have changed over time,holding the items in the consumption bundle constant.
• D) index of how much gasoline prices have increased,because all prices follow the price of gasoline.
• E) index of how much housing prices have changed,because housing is the most important item in the consumption bundle.

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Definitions:

Innovation

The act of introducing something new, such as an idea, method, or device, that significantly improves or changes existing conditions.

Committed Advocates

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