CFA CFA Level 1 Question of the Week – Economics

Question of the Week – Economics

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    • AdaptPrep
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      In January, Herman bought 10 apples and 10 pears. In February, the price of apples increased and Herman only bought 8 apples. At the same time, pears became less expensive and Herman bought 12 pears.

      Which of the following inflation indices would be calculated assuming Herman always bought 8 apples and 12 pears?

      • The Laspeyres index
      • The Paasche index
      • The Fisher index
    • AdaptPrep
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      The Laspeyres index is calculated based on the
      original basket of goods (10 apples and 10 pears).

      The Paasche index is calculated based on the new basket
      of goods (8 apples and 12 pears).

      The Fisher index is the geometric average of
      the two.

    • shannondaily
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      Boo! I got it wrong. :neutral_face: 

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