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Can someone please explain why a) and b) are FALSE? Alt. There are two goods in the economy. One of them increased its price by

Can someone please explain why a) and b) are FALSE?

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Alt. There are two goods in the economy. One of them increased its price by 4% from 2016 to 2017. The other decreased by 2%. The weights of the first good in 2017 in GDP was 60%, the weight of the second was 40% in the same year. a) The Laspeyres price index from 2016 to 2017 increased by 1.6 F b) We cannot know the Paasche index change as we do not know the weights of the goods in 2016. c) Increasing the wages of workers by using the Laspeyres index is the correct way to make sure their standard of living is not affected by the price changes

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