For a Price Index,it Is Preferable to Select the Base

question 105

True/False

For a price index,it is preferable to select the base period in a period of economic stability.

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Definitions:

Cause-and-Effect Conclusions

Reasoning that establishes a relationship between actions or events such that one or more are the result of the other or others; a fundamental principle in establishing scientific proof.

Validity

The degree to which a test, tool, or study accurately measures or reflects what it is intended to measure.

Applicability

The relevance or suitability of something for a particular purpose or in a specific context.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.