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Which of the Following Is NOT True of Price Indexes

Question 59

Multiple Choice

Which of the following is NOT true of price indexes?


A) They show changes in the general level of prices.
B) They are used to estimate the rate of inflation or deflation.
C) They are used to convert nominal values to real values, so comparisons can be made across time.
D) They are used to compute the growth rate of real output in the economy.

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