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Question
A Approximate results B Different results C Same results D None of them
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Solution
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⇒ Aggregate Expenditure Method - In this method, the quantities of commodities consumed by the particular group in the base year are estimated and these figures or their proportions are used as weights. P0n=∑Pnq0∑P0q0×100 Here, Pn Represent the price of the current year, P0 Represents the price of the base year and q0 Represents the quantities consumed in the base year. ⇒ Family Budget Method - In this method, the family budgets of a large number of people are carefully studied and the aggregate expenditure of the average family for various items is estimated. These values are used as weights. P0n=∑WI∑W Here, I=PnP0×100 and W=P0q0⇒ The aggregative expenditure method and family budget method always give : Sameresult.
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