Question

The question below uses the following: Consider a world in which there are just three goods: houses, milk, and pork chops. Listed below are the prices and quantities of these goods produced in the base year and in the current year.

		All Goods Sold in US	All Goods Sold in US		Goods Consumed by Typical Consumer	Goods Consumed by Typical Consumer
		Base Year	Current Year		Base Year	Current Year
houses
	price	2	4		2	4
	quantity	20,000	80,000		1	2
milk
	price	2	5		2	5
	quantity	10,000	100,000		20	25
pork chops
	price	4	6		4	6
	quantity	30,000	50,000		20	30

Using the GDP deflator calculation, the price level in the current year is:

		1.8
		none of the above
		2.0
		1.4
		1.6

Answer 1

I was confuse in answer so I did it in two way.. I hope it's help ful