Weighting monetary components in a simple-sum aggregate index ________.
A) has never been attempted because it is too complex
B) might be attempted with rigourous use of microeconomic, aggregation and index number theory
C) might not perform as well as the simple-sum index
D) might not predict inflation and business cycles better than conventional measures

Question

Quizplus · Accepted Answer

Weighting monetary components in a simple-sum aggregate index is a complex process that requires rigorous use of microeconomic, aggregation, and index number theory. While it may not necessarily outperform the simple-sum index or predict inflation and business cycles better than conventional measures, it is still a viable option that has been attempted by researchers.

Weighting Monetary Components in a Simple-Sum Aggregate Index ________