If period 1 is the base year, the bundle price of goods in period 1 is $100, and the bundle price of goods in period 2 is $110, the period 2 price index is:

	90.9
	105
	110
	210

If 2005 is the base year, the bundle price of goods in 2005 is $800, and the bundle price of goods in 2006 in 2006 is $900, the 2006 price index is:

	88.89
	106.45
	112.5
	120

Question 9 (3 points)

Deflation is a decrease in:

	The price of one item
	The overall price level.
	The average income level
	Real gross national product