Refer to the Information Provided in Table 22

question 89

Multiple Choice

Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
-Refer to Table 22.5 If 2014 is the base year, the price index in 2016 is

• A) 81.2.
• B) 86.8.
• C) 118.8.
• D) 123.2.

---

Definitions:

Inflation

The frequency at which the overall pricing of goods and services heightens, eroding the ability to buy.

Price Level

A measure indicating the average price of goods and services in an economy, often compared over time to assess inflation or deflation.

Inflation

The rate at which the cost of goods and services goes up, thereby reducing the purchasing capacity.

Period

A length or portion of time.