Question

Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000. The current price index is

Answer 1

125

Step-by-step explanation:

Calculation for the current price index using this formula

Current price index =Current price/Base year price

Let plug in the formula

Current price index=$2,500/$2,000

Current price index=1.25*100

Current price index=125

Therefore the Current price index is 125