If the CPI was 125 this year and 120 last year, then
a. the cost of the CPI basket of goods and services increased by 4.2 percent this year.
b. the price level increased by 4.2 percent this year.
c. the inflation rate for this year was 4.2 percent.
d. All of the above are correct.
d
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Define “producer surplus.”
Please provide the best answer for the statement.
A justification for patents is that without patents consumer surplus would be
A) larger than with the patent. B) zero since the product would not be invented. C) only slightly smaller than with the patent. D) zero since the monopoly would be a revenue maximizer.
Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers?
A. The GDP Price Index B. The Consumer Price Index C. The Retail Trade survey D. The Wholesale Price Index
The multiplier effect relates:
A. Changes in the price level to changes in real GDP B. Changes in the interest rate to changes in investment C. Changes in disposable income to changes in consumption D. Changes in spending to changes in real GDP