Refer to the diagram. The base year used in determining the price indices for this economy
A) cannot be determined from the information given.
B) is some year before 2000.
C) is more recent than 2000.
D) is 2000.

Question

Refer to the diagram. The base year used in determining the price indices for this economy
A) cannot be determined from the information given. 
B) is some year before 2000. 
C) is more recent than 2000. 
D) is 2000.

Quizplus · Accepted Answer

The horizontal axis shows years from 2000 to 2009, and the prices in each year are compared to the prices in the base year, which is 2000. Therefore, the answer is D, the base year used in this diagram is 2000.

Refer to the Diagram