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The Cost of the Basket of Goods in Year 1

Question 13

Multiple Choice

The cost of the basket of goods in Year 1 is $200 and the cost of the basket of goods in Year 2 is $225. If Year 1 is used as the base year, the Year 2 price index is:


A) 112.5.
B) 150.
C) 80.
D) 66.67.

Correct Answer:

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