True or False: The base period should be recent so that a price index is not severely affected by change in technology,and consumer attitudes and habits.

Question

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The base period should be recent so that it reflects current technology, consumer attitudes, and habits, which ensures that the price index is not severely affected by these changes. If an outdated base period is used, the price index may not accurately reflect the current cost of goods and services.

True or False: the Base Period Should Be Recent So