The base year for a price index is the year_____.
A)in which prices were lowest
B)in which prices were highest
C)in which real output was the largest
D)in which prices were stable
E)that serves as a reference point

Question

Quizplus · Accepted Answer

The base year for a price index serves as a reference point for comparing prices in other years. It is not necessarily the year in which prices were lowest, highest, or stable, nor in which real output was the largest.

The Base Year for a Price Index Is the Year_____