According to Figure 7.1 in Country A,
A)Relative prices may have been changing,but average prices were constant.
B)Relative prices were definitely constant.
C)Average prices and relative prices were definitely changing.
D)Average prices were constant,and unemployment was increasing.

Question

According to Figure 7.1 in Country A,
A)Relative prices may have been changing,but average prices were constant. 
B)Relative prices were definitely constant. 
C)Average prices and relative prices were definitely changing. 
D)Average prices were constant,and unemployment was increasing.

Quizplus · Accepted Answer

According to Figure 7.1, the graph shows that the CPI remains constant, while the relative prices for different goods and services are changing. Therefore, the best choice is A.