The Data in the Table Above Shows the Consumption by Families

question 161

Multiple Choice

The data in the table above shows the consumption by families in an economy.The year 2013 is the reference base period.
-Based on the table above,the cost of the base period market basket in the base period is

• A)$3,300.
• B)$21.00.
• C)$3,250.
• D)$4,650.
• E)$4,885.

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Definitions:

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to calculate real GDP.

Inflation

The acceleration in the general cost levels of goods and services, causing a decline in the ability to acquire.

Real GDP

Real Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country in a given period, adjusted for inflation.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a given time period.