Solved

The Table Below Shows the Price Index for Zimbabwe Starting

Question 305

Multiple Choice

The table below shows the price index for Zimbabwe starting in 2000.
 Year  Price Index 2000100.02001173.42002404.3720031880.520048462.2200528,586.62006319,222.5\begin{array} { | l | l | } \hline \text { Year } & \text { Price Index } \\\hline 2000 & 100.0 \\\hline 2001 & 173.4 \\\hline 2002 & 404.37 \\\hline 2003 & 1880.5 \\\hline 2004 & 8462.2 \\\hline 2005 & 28,586.6 \\\hline 2006 & 319,222.5 \\\hline\end{array}
The data show that


A) the inflation rate between 2005 and 2006 was 319.2 percent.
B) while Zimbabwe experienced a high price level, it did not experience high inflation.
C) the inflation rate between the base year and 2001 is 73.4 percent.
D) new goods bias and quality change bias are responsible for most of Zimbabwe?s inflation.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents