Suppose an index of average prices of imported goods in Canada indicates an increase in price of 2.3% over a 12- month period.Over the same period the Consumer Price Index indicates an increase in the general price level of 2.3%.What is the change in the price of imports relative to the change in the overall price level?

Question

Quizplus · Accepted Answer

Since the increase in the index of average prices of imported goods in Canada and the increase in the Consumer Price Index are both 2.3%, there is no change in the price of imports relative to the change in the overall price level.

Suppose an Index of Average Prices of Imported Goods in Canada