Asked by Frank Lafferty on Apr 25, 2024
Verified
From 2009 to 2013,the price level in the U.S.has increased by 8.3 percent.This implies that the price index in 2012 was:
A) 108.3.
B) 183.
C) 100.
D) 98.3.
E) 92.7.
Price Index
A number that shows the average price of products; changes in a price index over time show changes in the economy’s average price level.
Price Level
A measurement of the average of current prices across the entire spectrum of goods and services produced in the economy.
- Interpret the significance and calculation of price indices and their role in measuring changes in the economy.
Verified Answer
NK
Nasima Kholmurodova6 days ago
Final Answer :
A
Explanation :
The increase of 8.3 percent means that the price level in 2013 was 108.3 percent of the price level in 2009. Therefore, the price index in 2012 (which is in between 2009 and 2013) would be slightly lower than 108.3, but still closer to 108.3 than any other answer choice.
Learning Objectives
- Interpret the significance and calculation of price indices and their role in measuring changes in the economy.
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