If the price index is 130,this means that
A) prices are 130% higher than in the base year.
B) prices are 0.13 times higher than in the base year.
C) prices are 30% higher than in the base year.
D) nominal GDP must be inflated to determine the real GDP.
E) prices are 30% lower than in the base year.

Question

Quizplus · Accepted Answer

A price index of 130 indicates that prices are 30% higher than in the base year, as the index is typically set to 100 in the base year.

If the Price Index Is 130,this Means That