The table below shows Vietnam's price index between 2004 and 2007. $$\begin{array} { | c | c | }
\hline \text { Year } & \text { Price Index } \
\hline 2004 & 115.15 \
\hline 2005 & 124.65 \
\hline 2006 & 134 \
\hline 2007 & 145.12 \
\hline
\end{array}$$
Www)econstats.com
From the data,we can conclude that
A) the inflation rate 2005 and 2006 was 7.5 percent.
B) food and energy prices in Vietnam were increasing between 2004 and 2007.
C) commodity substitution bias occurred over the four years.
D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004.

Question

The table below shows Vietnam's price index between 2004 and 2007. $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Price Index } \
\hline 2004 & 115.15 \
\hline 2005 & 124.65 \
\hline 2006 & 134 \
\hline 2007 & 145.12 \
\hline
\end{array}$$
Www)econstats.com
From the data,we can conclude that
A) the inflation rate 2005 and 2006 was 7.5 percent.
B) food and energy prices in Vietnam were increasing between 2004 and 2007.
C) commodity substitution bias occurred over the four years.
D) deflation occurred between 2005 and 2006 as price increased more slowly than in 2004.

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the price index from one year to the next. From 2005 to 2006, the price index increased from 124.65 to 134, a change of 7.5 percent.

The Table Below Shows Vietnam's Price Index Between 2004 and 2007