-Refer to Table 6.11. If 1999 is the base year, the price index in 2001 is:
A) 1998.
B) 121.7.
C) 100.
D) 138.7.

Question

-Refer to Table 6.11. If 1999 is the base year, the price index in 2001 is:
A) 1998. 
B) 121.7. 
C) 100. 
D) 138.7.

Quizplus · Accepted Answer

The price index in a given year is calculated by dividing the price level in that year by the price level in the base year and then multiplying by 100. If 1999 is the base year, the price index in 2001 would be calculated based on the price levels provided in Table 6.11, resulting in 138.7.