The table below shows Vietnam's price index between 2004 and 2007.

Www)econstats.com
From the data, we can conclude that
A) the inflation rate 2005 and 2006 was 7.5 percent.
B) food and energy prices in Vietnam were increasing between 2004 and 2007.
C) commodity substitution bias occurred over the four years.
D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004.

Question

The table below shows Vietnam's price index between 2004 and 2007.

Www)econstats.com
From the data, we can conclude that
A) the inflation rate 2005 and 2006 was 7.5 percent. 
B) food and energy prices in Vietnam were increasing between 2004 and 2007. 
C) commodity substitution bias occurred over the four years. 
D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004.

Quizplus · Accepted Answer

The table shows a consistent increase in the price index from 100 in 2004 to 130.4 in 2007, indicating an overall inflation rate of 30.4%. However, the price index increased by 7.5% between 2004 and 2005, and again by 7.5% between 2005 and 2006. Therefore, the inflation rate in 2005 and 2006 was 7.5%, which is the same for both years. There is no information in the table to support options B, C, or D.

The Table Below Shows Vietnam's Price Index Between 2004 and 2007