Answer to Question #52451 in Macroeconomics for victoria
A statistical agency measures the price index using a basket of consumer goods. This table shows the price in dollars for this basket of goods for four years.
Year Price of the
4.3. In 1993:
A. The inflation rate and the price index both fell
B. The inflation rate fell but the price index increased
C. The inflation rate increased and the price index fell
D. The inflation rate and the price index both increased
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Thank you for your comments. Answer was fixed
how come it isnt b
I don't see why it would be D. Wouldn't if be B because the inflation rate fell from 10% (in 1992) to 5% (in 1993)?