The Table Below Shows the Price Index for Zimbabwe Starting

question 25

Multiple Choice

The table below shows the price index for Zimbabwe starting in 2000.

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The data show that

• A) the inflation rate between the base year and 2001 is 73.4 percent.
• B) new goods bias and quality change bias are responsible for most of Zimbabwe's inflation.
• C) the inflation rate between 2005 and 2006 was 319.2 percent.
• D) while Zimbabwe experienced a high price level, it did not experience high inflation.

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Definitions:

Craft Unions

Organizations of skilled workers in the same trade or craft aiming to negotiate collectively for better wages, working conditions, and hours.

Industrial Unions

Unions that organize workers across all crafts and trades within a single industry.

New Deal Era

A period in American history during the 1930s in which President Franklin D. Roosevelt implemented a series of economic interventions designed to recover from the Great Depression, including job creation programs, financial regulations, and social welfare initiatives.

Organized Labor

Associations of workers united to protect and further their rights and interests; also known as labor unions.