Suppose the Price Index Was 100 in 2004, 118 in 2005

question 145

Multiple Choice

Suppose the price index was 100 in 2004, 118 in 2005, and the inflation rate was lower between 2005 and 2006 than it was between 2004 and 2005. This means that

• A)the price index in 2006 was lower than 118.
• B)the price index in 2006 was lower than 136.
• C)the price index in 2006 was lower than 139.24.
• D)the inflation rate between 2005 and 2006 was lower than 1.18 percent.

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Definitions:

Scores Between

A reference to evaluating or comparing numerical values or results within a specified range.

Percentage

A way of expressing a number as a fraction of 100, used to describe proportions or compare magnitudes.

Normal Model

A type of statistical distribution that is symmetric, bell-shaped, and fully described by its mean and standard deviation.

Percentage

A proportion or share expressed as a fraction of 100.