45. The price level of a country in a certain year has increased 25% over the base period. The
index number is
(a) 25
(b) 125
(c) 225
(d) 2500
Answers
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Answer:
Step-by-step explanation:
LET THE BASE YEAR NUMBER BE = 100
NO. INCRESED BY 25% MEANS THAT = 25% OF 100 IS 25
CURRENT YEAR WILL BE = 100 + 25 = 125
SO, THE CORRECT ANWSER IS [B] 125
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