Please answer the questions 17) 16) The table below shows the price index for China starting in 2000.Year2000Price Index100.02001100.73200299.95101.1220032004105.062005106.952006108.52The inflation rate between 2004 and 2005 wasA) 3.9 percentB) 2.8 percentC) 1.8 percentD) 0.7 percent.17) Price indexes can overstate inflation because theyA) omit some quality improvements.B) do not contain the prices of any used goods.C) do not contain the prices of foreign goods.D) do not contain the prices of services.

17. Price index: - it is the measure of change in the price level, it measures the change in the…

17) Price indexes can overstate inflation because they A) omit some quality improvements. B) do not contain the prices of any used goods. C) do not contain the prices of foreign goods. D) do not contain the prices of services.

17) Price indexes can overstate inflation because they A) omit some quality improvements. B) do not contain the prices of any used goods. C) do not contain the prices of foreign goods. D) do not contain the prices of services.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter22: Inflation

Section: Chapter Questions

Problem 36P: If inflation rises unexpectedly by 5, indicate for each of the following whether the economic actor...

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Question

Please answer the questions 17)

16) The table below shows the price index for China starting in 2000.
Year
2000
Price Index
100.0
2001
100.73
2002
99.95
101.12
2003
2004
105.06
2005
106.95
2006
108.52
The inflation rate between 2004 and 2005 was
A) 3.9 percent
B) 2.8 percent
C) 1.8 percent
D) 0.7 percent.
17) Price indexes can overstate inflation because they
A) omit some quality improvements.
B) do not contain the prices of any used goods.
C) do not contain the prices of foreign goods.
D) do not contain the prices of services.

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