Suppose the Price Index Was 110 in 2004,120 in 2005,and

question 77

Multiple Choice

Suppose the price index was 110 in 2004,120 in 2005,and 125 in 2006.Which of the following statements is correct?

• A)The economy experienced inflation between 2004 and 2005 and between 2005 and 2006.
• B)The inflation rate was positive between 2004 and 2005,and it was negative between 2005 and 2006.
• C)The inflation rate was higher between 2005 and 2006 than it was between 2004 and 2005.
• D)All of the above are correct.

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Definitions:

Serous Membrane

A smooth tissue membrane that lines certain internal cavities of the body, secreting a lubricating fluid to reduce friction.

Cutaneous Membrane

Another term for the skin, the body's outer covering, which protects against external harm and assists in temperature regulation.

Synovial Membrane

A specialized connective tissue that lines the inner surface of capsules of synovial joints and tendon sheath, secreting synovial fluid to lubricate and nourish the cartilage.

Serous Membrane

A thin membrane lining certain internal cavities of the body, secreting a lubricating fluid.