The Table Below Shows the Price Index for Zimbabwe Starting

question 319

Multiple Choice

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

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Definitions:

Growth

Refers to the increase in size, value, or importance of an entity over time.

Sales

The trade of goods or services for financial compensation, which serves as the fundamental revenue generator for the majority of corporations.

Finished Goods Inventory

The stock of completed products ready for sale, representing one of the final stages in the production process.

Sales Forecast

An estimate of future sales, often based on historical data, current market trends, and forward-looking economic indicators, used for planning and decision-making purposes.