The price of a typical basket of goods and services in one period divided by the price of the same basket in a different year is a(n)
A) price index
B) TV-violence index
C) employment index
D) output index
E) unemployment index

Question

Quizplus · Accepted Answer

The given definition matches with the calculation of a price index, which measures the average price level of a given basket of goods and services over time. The other options, such as TV-violence index, employment index, output index, and unemployment index, do not fit the given definition.

The Price of a Typical Basket of Goods and Services