EC201 chapter_7_Quiz Full

0 d 130 answer b diff2 topic inflation skill analytic

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Unformatted text preview: Analytic Skills 26) If 2007 is year, the bundle price of goods in 2007 is $500, and the bundle price of goods in 2008 is $700, the 2008 the base price index is A) 128.6. B) 140.0. C) 71.4. D) 60.0. Answer: B Diff: 2 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 27) If the price index in period 2 is 109 and the price index in period 3 is 125, the rate of inflation between period 2 and period 3 is A) 16%. B) 9%. C) 14.7%. D) 8.7%. Answer: C Diff: 2 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 28) If 2007 is the base year and the inflation rate between 2007 and 2008 is 6.4%, the price index in 2008 is A) 16.4. B) 106.4. C) 64. D) cannot be determined from this information because the index in the base year is not given Answer: B Diff: 3 Topic: Inflation Skill: Analytic AACSB: Analytic Skills 29) If 2007 is the base year and the inflation rate between 2007 and 2008 is -4.5, the price index in 2008 is A) 104.5. B) -145. C) 95.5. D) cannot be determined from this information because the base year is not known Answer: C...
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