🎖️ Defence📈 Economics

Which of the following statements is/are correct? 1. A price index captures the change in the average price of a constan…

Q1
Which of the following statements is/are correct?1. A price index captures the change in the average price of a constant basket of commodities.2. If the price index takes values 100 , 110 and 121 in three consecutive years respectively, then the inflation rates in the 2 nd and 3rd years are 10% and 21 % respectively. Select the correct answer using the code given below.
a1 only
b2 only
cBoth 1 and 2
dNeither 1 nor 2
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