Table 6-5 The Table Below Pertains to an Economy with Only Two

Multiple Choice

Table 6-5
The table below pertains to an economy with only two goods-books and calculators. The fixed basket consists of 5 books and 10 calculators.

-Refer to Table 24-5. Using 2005 as the base year, what is the inflation rate?

A) 13.3 percent for 2006 and 14.8 percent for 2007
B) 13.3 percent for 2006 and 55 percent for 2007
C) 35 percent for 2006 and 14.8 percent for 2007
D) 35 percent for 2006 and 55 percent for 2007