Refer to the above diagram.The base year used in determining the price indices for this economy:
A)cannot be determined from the information given.
B)is some year before 1992.
C)is more recent than 1992.
D)is 1992.

Question

Refer to the above diagram.The base year used in determining the price indices for this economy:
A)cannot be determined from the information given. 
B)is some year before 1992. 
C)is more recent than 1992. 
D)is 1992.

Quizplus · Accepted Answer

The label on the vertical axis indicates that the price index is measured relative to a base year of 1992, so the answer is 1992.

Refer to the Above Diagram