If the CPI was 110 this year and 100 last year, then
a. the cost of the CPI basket of goods and services increased by 10 percent this year.
b. the price level increased by 110 percent this year.
c. the inflation rate for this year was 10 percent higher than the inflation rate for last year.
d. All of the above are correct.
a
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Answer the following statement true (T) or false (F)
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. The market wage is initially W1 and the firm is initially at Point B. Labor supply increases from S1 to S0. If the firm does not change the amount of capital it employs, the firm will move to Point ________ to maximize profits.
A. A B. C C. E D. F
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