19. If a typical market basket of goods and services cost $120 in 1975, the base year, and $180 in 1985, the price index in 1985 would be

a) 120 b) 150 c) 160 d) 180

20. If the price index is 120 in 1989 and 150 in 1990, what is the rate of inflation?

a) 20% b) 25% c) 30% d) more than 30%

21. Suppose nominal GDP is $566 billion in 1986, $600 billion in 1987 and $642 billion in 1988. If 1986 is the base year, the price index is 105 in 1987, and real growth in 1988 is 3%, from this information, the price index in 1988 is

a) less than 109 b) 109 c) greater than 109 but less than 110 d) 110 or over