Suppose that in 2009 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2010 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that
A) Estonia is a more expensive place to live than Lithuania.
B) Lithuania is a more expensive place to live than Estonia.
C) Estoniaʹs rate of inflation is higher than Lithuaniaʹs.
D) Lithuaniaʹs rate of inflation is higher than Estoniaʹs.
Correct Answer:
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