A Price Index

question 48

Multiple Choice

A price index

• A)is a mechanism to compare all prices in two different years.
• B)is the ratio of the price of a market basket in one year to the price of the market basket in the previous year times 100.
• C)is the ratio of the price of a market basket in one year to the price of the market basket in a base year times 100.
• D)is a mechanism to compare all prices in two different years and the ratio of the price of a market basket in one year to the price of the market basket in the previous year times 100.

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Definitions:

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The economic consequence of overlooking the subsequent best option when decisions are made.

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A mathematical expression representing the relationship between money supply, velocity of money, price level, and an economy's total output of goods and services.