-Refer to Table 6.11. If 1999 is the base year, the price index in 2000 is:
A) 1998.
B) 100.
C) 138.7
D) 121.7.

Question

-Refer to Table 6.11. If 1999 is the base year, the price index in 2000 is:
A) 1998. 
B) 100. 
C) 138.7 
D) 121.7.

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 for 2000 would be calculated based on the relative price change from 1999 to 2000. The given choice D (121.7) is likely the result of such a calculation.