Choose the best answer.A price index:
A) always includes a base year.
B) measures the cost of purchasing a market basket of output across different years.
C) is normalized to 100 for the base year.
D) always includes a base year,measures the cost of purchasing a market basket of output across different years,and is normalized to 100 for the base year.

Question

Quizplus · Accepted Answer

The correct answer is D because a price index always includes a base year, measures the cost of purchasing a market basket of output across different years, and is normalized to 100 for the base year.

Choose the Best Answer.A Price Index