Suppose the Base Year for a Laspeyres Index Is 2001

question 2

Multiple Choice

Suppose the base year for a Laspeyres index is 2001.The value of the index is 1.3 in 2004 and 1.6 in 2006.By how much did the cost of the bundle increase between 2004 and 2006?

• A).3%
• B) 23%
• C).23%
• D) 60%

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