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

question 50

Multiple Choice

In a particular economy, the price index was 270 in 2005 and 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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Definitions:

Liberal

A political and social philosophy that promotes individual freedoms, democracy, and a mixed economy with both government and private sector influences.

Moderate

Describes an intermediate level of intensity, amount, or degree; neither too much nor too little.

Conservative

A political and social philosophy that promotes retaining traditional social institutions.

Political Science

The study of governments, public policies, political processes, systems, and political behavior.