Which Statement Is Correct for a Simple Index Number

question 58

Multiple Choice

Which statement is correct for a simple index number?

• A)For the base year, the index is set to 0.000.
• B)We cannot use index numbers to compare two time series measured in different units.
• C)The simple relative index for period t = 5 is calculated as Y₅/Y₁.
• D)Weighted index numbers have few practical applications because of their complexity.

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