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In Calculating the Consumer Price Index

Question 219

Multiple Choice

In calculating the Consumer Price Index


A) the price of each item is allowed to change between the base period and current year but the quantity is held constant.
B) the quantity of each item is allowed to change between the base period and current year but the price is held constant.
C) both the price and quantity of each item is allowed to change between the base period and current year.
D) neither price nor quantity of each item is allowed to change between the base period and current year.

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