A weighted aggregate price index where the weight for each item is computed by using the quantities of the year of interest is known as the
A)Paasche Index
B)Simple Index
C)Laspeyres Index
D)Consumer Price index
E)Producer Price index

Question

A weighted aggregate price index where the weight for each item is computed by using the quantities of the year of interest is known as the 
A)Paasche Index
B)Simple Index
C)Laspeyres Index
D)Consumer Price index
E)Producer Price index

Quizplus · Accepted Answer

The Paasche Index is a weighted aggregate price index that uses the quantities of the year of interest as weights.

A Weighted Aggregate Price Index Where the Weight for Each