Question: the countries x and y has consumer price indexes in...
The countries, X and Y, has consumer price indexes in 2015 equal to 160 (in country X) and to 120 (in country Y) The base year is 2000.
a) Which of the countries has experienced a higher inflation rate between the years 2000 and 2015.
b) Suppose the CPI of Country Y in 2016 (with base year 2000) is equal to 130 and the CPI in 2016 of country X is 170. What can we say about the rate of inflation (between the base year and 2016) and the price level in 2016 in the two countries? Which country has experienced a higher inflation rate and which country has a higher price level? Explain your answer and If you do not have enough information, what would you need?