Use the following figure to answer the questions : Figure 7.1:
-According to Figure 7.1,which of the following statements was definitely true about Country B?
A)Relative prices were changing.
B)The price level in general increased over the time period 1970 to 1995.
C)Real incomes were increasing.
D)The price level was about the same in 1970 and 1995.

Question

Use the following figure to answer the questions : Figure 7.1: 
-According to Figure 7.1,which of the following statements was definitely true about Country B?
A)Relative prices were changing. 
B)The price level in general increased over the time period 1970 to 1995. 
C)Real incomes were increasing. 
D)The price level was about the same in 1970 and 1995.

Quizplus · Accepted Answer

The graph shows a general upward trend in the price level of Country B from 1970 to 1995, indicating that statement B is definitely true. There is no distinct information available regarding relative prices or real incomes, and it cannot be determined whether the price level was the same in 1970 and 1995. Therefore, choices A, C, and D are not applicable.

Use the Following Figure to Answer the Questions : Figure