Answer to Question #112869 in Economics for JENNIE

Question

The table shows the year on year percentage changes for a Country’s Retail Price Index from 1990 to 1996.

Year % change
1990 18.0
1991 11.7
1992 8.6
1993 4.8
1994 4.9
1995 6.1
1996 4.5

Which statement about the price level is correct?
A) It fell over the first half of the period
B) It was at its highest at the start of the period
C) It was at its lowest at the end of the period
D) It was at the lowest at the start of the period

Answer 1

It was at the lowest at the start of the period, because the Retail Price Index continued to increase during all the period.

So, the correct answer is D.