The next questions refer to the following hypothetical economy
In one year, an economy produces 100 units of capital goods, which sell for $30 each, and 200 units of consumer goods, which sell for $10 each. In the second year, 150 units of capital are produced, and sold for $20 each, while 220 units of consumer goods are produced and sold for $20 each. In the third year, 160 units of capital are sold for $30 each, and 200 units of consumer goods are sold for $20 each.
-If year one is taken as the base year,the GDP deflator in years two and three is
A) 1.0 in year two and 1.1 in year three
B) 1.0 in year two and 2.0 in year three
C) 1.23 in year two and 1.12 in year three
D) 1.5 in year two and 1.10 in year three
E) 1.10 in year two and 1.29 in year three

Question

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The Answer of The next questions refer to the following hypothetical economy
In one year, an economy produces 100 units of capital goods, which sell for $30 each, and 200 units of consumer goods, which sell for $10 each. In the second year, 150 units of capital are produced, and sold for $20 each, while 220 units of consumer goods are produced and sold for $20 each. In the third year, 160 units of capital are sold for $30 each, and 200 units of consumer goods are sold for $20 each.
-If year one is taken as the base year,the GDP deflator in years two and three is
A) 1.0 in year two and 1.1 in year three
B) 1.0 in year two and 2.0 in year three
C) 1.23 in year two and 1.12 in year three
D) 1.5 in year two and 1.10 in year three
E) 1.10 in year two and 1.29 in year three

The Next Questions Refer to the Following Hypothetical Economy