A price index is
A)a comparison of the current price of a market basket to 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 current price of a market basket of goods and services relative to a fixed point of reference, usually a base year.

A Price Index Is