Author Question: The table below shows Vietnam's price index between 2004 and 2007. Year Price Index 2004 115.15 ... (Read 62 times)

chads108 · **on:** Jun 29, 2018

The table below shows Vietnam's price index between 2004 and 2007.

Year Price Index
2004 115.15
2005 124.65
2006 134
2007 145.12
www.econstats.com

From the data, we can conclude that
A) the inflation rate 2005 and 2006 was 7.5 percent.
B) food and energy prices in Vietnam were increasing between 2004 and 2007.
C) commodity substitution bias occurred over the four years.
D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004.

Question 2

An increase in technology for producing personal computers leads to

A) an increase in the demand for personal computers.
B) a decrease in the demand for personal computers.
C) an increase in the supply of personal computers.
D) a decrease in the supply of personal computers.