Suppose That in 2015 the Chain-Weighted Price Index for GDP

question 73

Multiple Choice

Suppose that in 2015 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2016 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) Estonia's rate of inflation is higher than Lithuania's.
• D) Lithuania's rate of inflation is higher than Estonia's.

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