SCENARIO 16-16
Given Below Are the Average Prices for Three

question 106

Short Answer

SCENARIO 16-16
Given below are the average prices for three types of energy products for five consecutive years. $$\begin{array} { r r r r } \text { Year } & \text { Electricity } & \text { Natural Gas } & \text { Fuel Oil } \\1 & 43.205 & 25.893 & 0.892 \\2 & 16.959 & 28.749 & 0.969 \\3 & 47.202 & 28.933 & 1.034 \\4 & 48.874 & 29.872 & 0.913 \\5 & 48.693 & 28.384 & 0.983\end{array}$$
-Referring to Scenario 16-16, what are the simple price indices for electricity, natural gas and
fuel oil, respectively, in year 5 using year 1 as the base year?

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Definitions:

Domestic Investment

Domestic investment is the spending on capital equipment, inventories, and structures within a country by its residents and businesses.

Trade Deficits

A situation where a country's imports of goods and services exceed its exports.

Domestic Investment

The total amount of money that is invested within a country's borders by both the public and private sectors.

U.S. Saving

The portion of disposable income that is not spent on consumption of goods and services in the United States, but set aside for future use.