A price index is ________.
A. 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
B. a comparison of the current price of a market basket to a fixed point of reference
C. a comparison of real GDP in one period relative to another
D. a ratio of real GDP to nominal GDP
Answer: B
You might also like to view...
Refer to the scenario above. Which family pays the highest percentage of its income as tax if income taxes collected by the local government are regressive in nature?
A) The first household B) The second household C) The third household D) The fourth household
Since 1950, expansions in the United States have become ________, while recessions have become ________
A) longer; longer B) shorter; shorter C) shorter; longer D) longer; shorter