A Consumer Price Index of 120 for a certain year means that the average price of consumer items in that year was

A. 20% higher than the average price of the preceding year.
B. 120% higher than the average price in the base period 1982-84.
C. 20% higher than the average price in the base period 1982-84.
D. about $120 per basket of consumer goods and services.

Answer: C

Economics

You might also like to view...

Refer to Figure 13.1. All else equal, if the economy is in a recession, expansionary fiscal policy would result in a movement from

A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.

Economics

Explain how fiscal policy can correct a contractionary gap

What will be an ideal response?

Economics