In Country Z,the Prices of Goods Are Measured on an Annual

Multiple Choice

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 if consumer purchasing habits change; a chained index usually outperforms a traditional index.