In the construction of an index number, the value assigned to the base period is usually:
Correct answer: D. 100
- A. 0
- B. 1
- C. 10
- D. 100
Explanation
The base period is conventionally assigned an index value of 100. Other periods are then expressed as percentages of the base period, so an index of 120 means a 20 percent increase over the base.
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