A price index is
A) a measurement showing how the average price of a bundle of goods changes over time.
B) a measurement showing the cost of a bundle of goods at a point in time.
C) a sustained increase in the overall price level.
D) a decrease in the overall price level.

Question

Quizplus · Accepted Answer

A price index measures the average price of a basket of goods and how it changes over time, providing an indication of inflation or deflation.

A Price Index Is