The Next Questions Refer to the Following Hypothetical Economy

question 20

Multiple Choice

The next questions refer to the following hypothetical economy
In one year, an economy produces 100 units of capital goods, which sell for $30 each, and 200 units of consumer goods, which sell for $10 each. In the second year, 150 units of capital are produced, and sold for $20 each, while 220 units of consumer goods are produced and sold for $20 each. In the third year, 160 units of capital are sold for $30 each, and 200 units of consumer goods are sold for $20 each.
-If year one is taken as the base year,the GDP deflator in years two and three is

• A) 1.0 in year two and 1.1 in year three
• B) 1.0 in year two and 2.0 in year three
• C) 1.23 in year two and 1.12 in year three
• D) 1.5 in year two and 1.10 in year three
• E) 1.10 in year two and 1.29 in year three

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Definitions:

Water-based Solution

A water-based solution is a mixture in which water serves as the solvent, dissolving another substance, known as the solute.

Strong Electrolyte

A substance that completely dissociates into ions in solution, conducting electricity efficiently.

Electrolyte

A material that, when dissolved in a polar solvent like water, yields a solution capable of conducting electricity.

Compound

A substance made up of two or more different elements that are chemically bonded together.