When Comparing the Annual Inflation Rate in Australia Based on the CPI

question 58

Multiple Choice

When comparing the annual inflation rate in Australia based on the CPI with the annual inflation rate based on the chain price index for Household Final Consumption Expenditure (HFCE) ,the data show that the two inflation rates

• A)both fluctuate,but the fluctuations have little relationship to each other.
• B)move up and down in similar but not identical ways.
• C)remained constant over the forty year period after 1979.
• D)steadily increased over the forty year period after 1979.
• E)move in opposite directions.

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