. In chain base method"the base period is:
(A) Fixed
(B) Not fixed
(C) Constant
(D) Zero
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Answer:
(b) Not fixed is your answer
Explanation:
In this method, there is no fixed base period; the year immediately preceding the one for which the price index has to be calculated is assumed as the base year. Thus, for the year 1994 the base year would be 1993, for 1993 it would be 1992, for 1992 it would be 1991, and so on.
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