In Computing a Price Index

question 387

Multiple Choice

In computing a price index,

• A) the most recent year is always set equal to 100.
• B) both the quantities in the market basket and the prices change from year to year.
• C) the quantities in the market basket stay the same while the prices differ.
• D) the base year must be one for which the inflation rate was zero.

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Definitions:

Muscle Tremors

Involuntary, rhythmic muscle contractions leading to shaking movements in one or more parts of the body.

Chronic

Describing a condition or disease persisting for a long time or constantly recurring.

Progressive Disease

A disease that worsens over time, often leading to increased severity of symptoms or spread within the body.

Elderly People

Individuals who are in the later stage of life, typically regarded as being 65 years of age or older.