By definition, the base year of a price index has an index number of:
A107
B200
C100
D110
Answer & Solution
Correct answer: C. 100
1. Divide every year's spending by the base year's.
2. The base year is set to 100.
3. Index numbers have no units.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e, Chapter 8, Inflation (CC BY 4.0)._
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