If the per unit prices of the three goods each were $1 in a base year used to construct a GDP price index,then the GDP price index in the current year is:
A) 205.5.
B) 255.5.
C) 39.3.
D) 100

Question

Quizplus · Accepted Answer

To find the GDP price index, we need to find the current prices of the three goods and divide them by their base year prices, which are each $1. Let's say the current prices of the three goods are $2, $4, and $3. Then, the GDP price index would be:

(($2/$1) + ($4/$1) + ($3/$1))/3 x 100 = 255.5

Therefore, the correct answer is B.

If the Per Unit Prices of the Three Goods Each