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:

Cause-and-Effect Relationships

The principle that an action or event (cause) will produce a certain response or outcome (effect) in a given context.

Descriptive

Pertaining to the detailed description of characteristics, behaviors, or the setting of an event without imposing any interpretations or judgments.

Correlational Research

A method of research that examines the relationship between two or more variables to determine if a change in one is associated with a change in the other(s).

Cause-and-Effect Relationship

A connection between two events where one is the result of the other or others.