To Measure the Purchasing Power of the Dollar in a Particular

question 100

Multiple Choice

To measure the purchasing power of the dollar in a particular year _____

• A) compute the price index for that year and then divide 100 by that price index.
• B) compute the price index for that year and then multiply 100 by that price index.
• C) compute the price index for that year and then add 100 to that price index.
• D) compute the price index for that year and then subtract 100 from that price index.
• E) compute the price index for that year.