Suppose That in 2009 the Chain-Weighted Price Index for GDP

question 93

Multiple Choice

Suppose that in 2009 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2010 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that

• A)Estonia is a more expensive place to live than Lithuania.
• B)Lithuania is a more expensive place to live than Estonia.
• C)Estoniaʹs rate of inflation is higher than Lithuaniaʹs.
• D)Lithuaniaʹs rate of inflation is higher than Estoniaʹs.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over time.

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or the hours it operates.

Double-Declining-Balance

An accelerated method of depreciation that doubles the standard depreciation rate, resulting in higher depreciation expenses in the earlier years of an asset's life.

Residual Value

The salvage value of an asset after its period of use has ended, reflecting its remaining worth.