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(Table 4: Market Basket Prices in Macroland) Table 4 Shows

Question 40

Multiple Choice

(Table 4: Market Basket Prices in Macroland) Table 4 shows the cost of a given market basket of goods and services in Macroland over a four-year period. Use this market basket to compute the price index for year 4 if the base year is year 1. The year 4 price index is:
 Table 4: Market Basket Prices in Macroland  Year 1  Year 2  Year 3  Year 4  Cost of the market basket $600$640$630$660\begin{array}{l}\text { Table 4: Market Basket Prices in Macroland }\\\begin{array}{|l|l|l|l|l|}\hline & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } & \text { Year 4 } \\\hline \text { Cost of the market basket } & \$ 600 & \$ 640 & \$ 630 & \$ 660 \\\hline\end{array}\end{array}


A) 107.
B) 110.
C) 4.7%.
D) 10.0%.

Correct Answer:

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