i. An index is a convenient way of comparing changes for different variables, i.e., average income and food prices.
Ii) The concept of real income is sometimes called deflated income.
Iii) Purchasing power of the dollar is determined by finding the inverse of the CPI
A) (i), (ii) and (iii) are all correct statements
B) (i) and (ii) are correct statements, but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Question

Quizplus · Accepted Answer

An index is used to compare changes in different variables, real income is often referred to as deflated income, and purchasing power is inversely related to the CPI.

I an Index Is a Convenient Way of Comparing Changes