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Learn how to calculate Laspeyre's Price Index Number with this easy-to-understand explanation. The formula uses base-year quantities as weights to measure inflation or deflation over time. The correct formula is P01(L) = (sum P1q0 / sum P0q0) * 100, where P1 is the current year's price, q0 is the base year's quantity, and P0 is the base year's ...
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