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The Price Index for 2007 Is 1

Question 47

Multiple Choice

The price index for 2007 is 1.28.What does this mean?


A) It means that the average price level has increased by 128 percent over 2006.
B) It means that the average price level has increased by 1.28 percent over the base year.
C) It means that the average price level has increased by 28 percent over 2006.
D) It means that the average price level has increased by 28 percent over the base year.

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