i. if the typical market basket of goods and services cost $400in 1995, and the price index (base year 1992 )for 1995 is 120, thenif this same typical bundle cost $420 in 1996, the price index in1996 would be: a.120 b.between 120 and 125 c.125 d.above 125 ii.supposez the non-institutionalized population over age 15 is20 million, 10 million of whome are female, the labour force is 16million, 6 million of whome are female, and the number of peopleemployed is 15 million, 5.5 million of whome are female. the femaleparticipation rate is: a. 10/20 b. 6/16 c. 5.5/15 d. 6/10 iii.consider an economy in which the current level of income is$700b, the multiplier is 3, the marginal tax rate is 20%, and thecurrent budget deficit is $20b. suppose the government increasesthe spending to increase GDP to $715b, the budget dificitbecomes: a. less than or equal to $20b b. more than $20b but not more than $23b c. more than $23b but not more than $26b d. more than $26b . . .
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