If one of the item in a simple aggregate price index is milk, the index will be unchanged if the price of milk is expressed in dollars per quart instead of dollars per gallon. In a Passche index, prices are weighted according to the quantities of the various items in the base period. The Consumer Price Index is a simple aggregate index.One application of the Consumer Price Index is to automatically increase wages or benefits through its inclusion in labor contracts. "Real income" refers to the amount money available after government taxes have been paid. The Producer Price Index measures changes in the physical volume or quantity of output of manufacturing, mining, and electric and gas utilities. TRUE OR FALSE
If one of the item in a simple aggregate price index is milk, the index will be unchanged if the price of milk is expressed in dollars per quart instead of dollars per gallon.
In a Passche index, prices are weighted according to the quantities of the various items in the base period.
The
"Real income" refers to the amount money available after government taxes have been paid.
The Producer Price Index measures changes in the physical volume or quantity of output of manufacturing, mining, and electric and gas utilities.
TRUE OR FALSE
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