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Deflation is decrease in

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Reference no: EM133398764

Questions

1. If period 1 is the base year, the bundle price of goods in period 1 is $100, and the bundle price of goods in period 2 is $110, the period 2 price index is:

90.9

105

110

210

2. If 2005 is the base year, the bundle price of goods in 2005 is $800, and the bundle price of goods in 2006 in 2006 is $900, the 2006 price index is:

88.89

106.45

112.5

120

3. Deflation is a decrease in:

The price of one item

The overall price level.

The average income level

Real gross national product

Reference no: EM133398764

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