PERCENTAGE CHANGE IN CONSUMER PRICE INDEX 1970 1975 1980 1985 1990 1995 YEAR Country B Country A 2) Figure 7.1 (Figure 7.1) Assume two people in Countries A and B make the same income over this time period. From the graph, we can say, with no changes to their income, that which of the following is true? A) Both individuals would be equally as well off in 1970 as 1995. B) The income of the individual in Country B would be able to purchase more goods and services in 1995 than the income of the individual in Country A. C) The income of the individual in Country A would be able to purchase more goods and services in 1995 than the income of the individual in Country B. D) Both individuals would be worse off in 1995 than they were in 1970.
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The graph shows the change in the price level index for both countries from 1970 to 1995. The price level index is a measure of the average price of goods and services in an economy. According to the statement, both individuals would be worse off in 1995 than Show more…
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