In a particular economy, the price index was 270 in 2005 and 300 in 2006. Which of the following statements is correct?
A) The economy experienced a rising price level between 2005 and 2006.
B) The economy experienced a higher inflation rate between 2005 and 2006 than it had experienced between 2004 and 2005.
C) The inflation rate between 2005 and 2006 was 30 percent.
D) All of the above are correct.
Correct Answer:
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