The price index computed between two time periods is given as 128%,This implies that the

The correct answer is: "living standards have risen by 128%". A price index is a measure of the average change in prices of a basket of goods and services over time. The increase in the price index from 100% to 128% means that the overall price level has increased by 28% over that period. Therefore, if living standards were to remain constant, people would need to earn 28% more to maintain their standard of living. However, since the question says the price index is "computed between two time periods", and since it indicates an increase in the price index, this means that the living standards have risen by 128%, since the overall price level has increased by that percentage, and people can still afford to buy more goods and services with their income.