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The Table Below Shows the Price Index for Zimbabwe Starting

Question 319

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The table below shows the price index for Zimbabwe starting in 2000.
 Year  Price Index 2000100.02001173.42002404.3720031880.520048462.2200528,586.62006319,222.5\begin{array} { | l | l | } \hline \text { Year } & \text { Price Index } \\\hline 2000 & 100.0 \\\hline 2001 & 173.4 \\\hline 2002 & 404.37 \\\hline 2003 & 1880.5 \\\hline 2004 & 8462.2 \\\hline 2005 & 28,586.6 \\\hline 2006 & 319,222.5 \\\hline\end{array}
The data show that


A) the inflation rate between 2005 and 2006 was 319.2 percent.
B) while Zimbabwe experienced a high price level, it did not experience high inflation.
C) the inflation rate between the base year and 2001 is 73.4 percent.
D) new goods bias and quality change bias are responsible for most of Zimbabwe?s inflation.

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