Asked by Dan Francis Rodriguez on May 16, 2024
Verified
The price index in the base year always equals_____.
A) 0
B) 10
C) 100
D) 1
E) 0.01
Price Index
A statistical measure that shows changes in the cost of acquiring a specific basket of goods and services over time.
- Understand the concepts of nominal and real GDP and the significance of base years in price indices.
Verified Answer
AP
Abhishek PattnaikMay 23, 2024
Final Answer :
C
Explanation :
The price index in the base year is always set equal to 100 by definition.
Learning Objectives
- Understand the concepts of nominal and real GDP and the significance of base years in price indices.