Which of the Following Statements Is TRUE

question 5

Multiple Choice

Which of the following statements is TRUE?

• A) Both the Laspeyres index and Paasche index over-estimate price increases
• B) The Laspeyres index may be easier to calculate as it needs only base quantities
• C) Weights used in the Paasche index calculation may be out-of-date
• D) The Laspeyres index is not usually considered a 'pure' price index

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