Assume an economy which is producing only one product.Output and price data for a three-year period are as follows. Refer to the above data.If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:
A)4 and 6.
B)6 and 4.
C)120 and 100.
D)100 and 150.

Question

Assume an economy which is producing only one product.Output and price data for a three-year period are as follows.  Refer to the above data.If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:
A)4 and 6. 
B)6 and 4. 
C)120 and 100. 
D)100 and 150.

Quizplus · Accepted Answer

The Answer of Assume an economy which is producing only one product.Output and price data for a three-year period are as follows.  Refer to the above data.If year 2 is chosen as the base year, in years 1 and 3 the price index values, respectively, are:
A)4 and 6. 
B)6 and 4. 
C)120 and 100. 
D)100 and 150.

Assume an Economy Which Is Producing Only One Product