Multiple choice

All the following statements are incorrect except:
i. The rate of inflation is the same regardless of the price index used to calculate it. ii. The price index is always growing over time. iii. The basket of goods used to calculate the price index is changing over time. iv. The price index cannot be used to deflate current prices into constant prices.

  1. i and iv only

  2. ii and iii only

  3. i and iii only

  4. ii and iv only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 (a)

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