A change in a price index measures
A)a change in a specific absolute price.
B)a change in some broad average price over some particular time span.
C)a change in quantities of commodities sold.
D)a change in relative prices.
E)the change in gross domestic product.

Question

Quizplus · Accepted Answer

A price index measures the average level of prices of goods and services in the economy over a period of time. Therefore, a change in a price index reflects a change in some broad average price over some particular time span, as opposed to a specific absolute price.

A Change in a Price Index Measures