Question

For meaningful comparison common price level base is used because ______

Options

• Domestic price is differ in different coilntries  

• 100 GDP of one country is not same as 100 GDP of other country  

• Both Domestic prices differ in different countries and the 100 GDP of one country is not the same as the 100 GDP of another country. 

• None of the above

Answer 1

For meaningful comparison common price level base is used because Both Domestic prices differ in different countries and the 100 GDP of one country is not the same as the 100 GDP of another country. 

Explanation:

The average of current prices over the complete spectrum of products and services generated in the economy is referred to as a price level. Price level refers to any static representation of the price of a certain good, service, or tradable asset in a broader sense. Price levels can be expressed as discrete values or as narrow ranges, such as ticks with securities prices.