In a Particular Economy,the Price Index Was 270 in 2005

question 157

Multiple Choice

In a particular economy,the price index was 270 in 2005 and it was 300 in 2006 .Which of the following statements is correct?

• A)The economy experienced a rising price level between 2005 and 2006.
• B)The economy experienced a higher inflation rate between 2005 and 2006 than it had experienced between 2004 and 2005.
• C)The inflation rate between 2005 and 2006 was 30 percent.
• D)All of the above are correct.

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