A price index is:
A)a comparison of the price of a market basket from a fixed point of reference.
B)a comparison of real GDP in one period relative to another.
C)the cost of a market basket of goods and services in a base period divided by the cost of the same market basket in another period.
D)a ratio of real GDP to nominal GDP.

Question

Quizplus · Accepted Answer

A price index measures the average change in prices over time for a fixed basket of goods and services, comparing the cost of this basket in different periods relative to a base period.

A Price Index Is