Question

Price index are used in calculating the purchasing power of money and real storage

Answer 1

Answer:

yes it's right , price index is calculated

Answer 2

Price Index calculates the normalized or weighted average of prices of all a particular category of good and services within a specific region.It shows both the purchasing power of money and storage condition.

Explanation:

There are various types of price index such as Consumer Price Index,Producer Price Index,Employment Cost Index,Export Price Index,Import Price Index and GDP Deflator. Price Index basically reflects the real purchasing power of money or the real cost of living of people in general.

Producer price index is a type of price index which measures the average change in price level of various products received by producers or companies.It also shows the various classifications of products and the condition of the warehouse and storage facilities.