If the average price level in 2002 was 1.25 relative to the base year in 1992, then:
A) a dollar in 2002 bought just 80 percent of the goods and services that a dollar bought in 1992.
B) average prices were 80 percent higher in 2002 than in 1992.
C) a dollar in 2002 bought 25 percent more goods and services than a dollar bought in 1992.
D) average prices were 125 percent higher in 2000 than in 1992.
E) purchasing power rose 25 percent between 1992 and 2002.
Correct Answer:
Verified
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