Suppose the index of prices received by farmers for 2000 was 1.02 and the base year of this index was 1995. Then

A) relative to 1995, farm prices were 2% higher in 2000.
B) relative to 1995, farm prices were 102% higher in 2000.
C) relative to 2000, farm prices were 2% higher in 1995.
D) relative to 2000, farm prices were 102% higher in 1995.

Answer: A

Economics

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