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Index Numbers


When you have completed this chapter, you will be able to:

  1. Describe the term index.


  2. Understand the difference between a weighted and an unweighted index.


  3. Construct and interpret a Laspeyres price index.


  4. Construct and interpret a Paasche price index.


  5. Construct and interpret a value index.


  6. Explain how the Consumer Price Index is constructed and interpreted.












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