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JAMB Economics 1990 Question 29

Question 29

Money and Inflation

If the same basket of goods which cost N12.00 in 1985 cost N15.00 in 1987, the price index for 1987 is

  1. A.25
  2. B.80
  3. C.100
  4. D.125
Show the answer and explanation

Answer: D (125)

Explanation

Price index = (15 ÷ 12) × 100 = 125, with 1985 as the base year (100).