The Laspeyres price index_____________?
Correct answer: A. Regards the base year quantities as fixed
- A. Regards the base year quantities as fixed
- B. Regards the base year price as fixed
- C. Regards the current year quantities as fixed
- D. non of these
Explanation
The Laspeyres index uses base-year quantities as weights while comparing prices between periods. It therefore keeps the consumption basket fixed at the base-year composition.
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