MCQ for Economics Nov 2008 Paper 1 Question 24

[arvind0708]

24 The figures were taken from the consumer price indices of retail prices for three countries.
country 2006 2007
X 100 120
Y 140 150
Z 90 99
Between 2006 and 2007, what is correct?
A Country X has the highest growth in the purchasing power of money.
B Country Y has the highest growth in the purchasing power of money.
C Country Z has the lowest rate of inflation.
D Country Y has the lowest rate of inflation.

How to know the answer

 

[Xenon]

Inflation figures can be quickly calculated as follows: ((index of current year-index of last year)/index of last year)%
This gives X= 20%, Y =7.1%, Z=10%
Ans: D