16.Consider a nation in which the price index was 150 last year and this year it is 130. Which statement is correct?a.Inflation was 20% this year.b.Deflation was 20% this year.c.Housing prices must have fallen.d.Inflation was 13.33% this year.e.Deflation was 13.33% this year.
____17.In Nation A, the price index rises from 110 to 120 in a particular year. In the same year, the price level rises from 120 to 130 in Nation B. This means:
____18.Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10% on average, but the price of tennis rackets remains the same. Which statement is correct?
Refer to the following figure to answer the questions that follow: