Assume an Economy Is Producing Only One Product and That

Multiple Choice

Assume an economy is producing only one product and that year 1 is the base year.Output and price data for a five-year period are as follows:

-Refer to the information above to answer this question.What is the price index for year 3?

A) 51.2.
B) 125.
C) 195.
D) It cannot be determined from the information given.