Economy, asked by sharmasuman2064, 9 months ago

discuss the simple aggregative price index. what are it's limitations?

Answers

Answered by hiranjanyadav70

Answer:

Two main disadvantages of the simple aggregate price index are: (i) it is sensitive to the units of measurement for each commodity. (ii) it fails to consider the relative importance of the commodities. 4 The first disadvantage may be overcome by changing to a simple average of price relative index.

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