I an Index Is a Convenient Way of Comparing Changes

question 57

Multiple Choice

i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices. ii. The concept of real income is sometimes called deflated income.
iii. Purchasing power of the dollar is the same as the CPI.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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