Moderate

The index number of base period is always:_______________?

Correct answer: A. 100

  • A. 100
  • B. 200
  • C. The price of that year
  • D. None of these

Explanation

The base period is assigned an index value of 100 by convention, and all other period values are interpreted relative to it. The actual base-year price is not itself the index number.

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