Refer to the Information Provided in Table 21

question 264

Multiple Choice

Refer to the information provided in Table 21.9 below to answer the question(s) that follow.
Table 21.9
-Refer to Table 21.9. Assume that this economy produces only two goods Good X and Good Y. If year 1 is the base year, the value for this economy's GDP deflator in year 2 is

• A) 93.9.
• B) 100.
• C) 106.5.
• D) 179.

---

Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.

Open-market Purchase

The buying of securities by a central bank from the market to inject liquidity and encourage economic growth.

Aggregate Demand

The complete need for goods and services across an economy at an established price level within a specific period.

Government Spending

The total amount of money spent by the government on various services, infrastructure projects, and welfare programs.