In Country Z,the prices of goods are measured on an annual basis on the last day of the year.In Country Y,the prices of goods are measured on a weekly basis every Wednesday.Comparing the two countries based on this information:
A) Country Y more accurately combats the upward bias of its price index by using a chained index.
B) Country Z more accurately combats the upward bias of its price index by using a chained index.
C) Country Z will experience hyperinflation.
D) Country Y will experience hyperinflation.
E) Neither country has a very good price index; price indices must be measured daily.
Correct Answer:
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