A "price index" is a
A)summary statistic that reflects changes in the price of a group of goods and services relative to the price in a base year.
B)measure of the interest rate.
C)good whose price tends to increase and decrease at about the same rate as most other goods.
D)measure of economic growth.

Question

Quizplus · Accepted Answer

A "price index" is a summary statistic that reflects changes in the price of a group of goods and services relative to the price in a base year. It is used to measure inflation or deflation, and to adjust for the effects of rising prices on the purchasing power of money.

A "Price Index" Is a