A measurement showing how the average price of a bundle of goods changes over time is a
A) nominal price.
B) price index.
C) real price.
D) sticky price.

Question

Quizplus · Accepted Answer

A price index is specifically designed to measure changes in the average price of a basket of goods over time. Nominal prices are just the current prices without accounting for inflation, while real prices express nominal prices in terms of a base year's prices. Sticky prices refer to prices that do not adjust quickly to changes in supply and demand.

A Measurement Showing How the Average Price of a Bundle