Use the following to answer questions :
Table: Price and Output Data
-(Table: Price and Output Data) Look at the table Price and Output Data. The price index for year 4 is:
A)80.
B)120.
C)0.
D)6.

Question

Use the following to answer questions :
Table: Price and Output Data 
-(Table: Price and Output Data) Look at the table Price and Output Data. The price index for year 4 is:
A)80. 
B)120. 
C)0. 
D)6.

Quizplus · Accepted Answer

To calculate the price index, we use the formula:
Price index = (Price in current year / Price in base year) x 100
So, for Year 4, the price index will be:
Price index = (120 / 100) x 100 = 120
Therefore, the answer is (B) 120.

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