Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year. In 2012, the basket's cost was $50; in 2014, the basket's cost was $51; and in 2016, the basket's cost was $52 . The value of the CPI in 2014 was
a. 98.0.
b. 102.0.
c. 104.0.
d. 151.0.
b
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A determinant of the price elasticity of supply is the extent to which
A) consumers like the quality of the good. B) the demand for the good is relatively elastic. C) the good has many consumer substitutes. D) production of the good uses commonly available resources.
If velocity were constant, as assumed by the pre-Keynesian version of the quantity theory, then a 10% change in the money supply would cause
A) a proportionate change in prices. B) a proportionate change in output. C) the sum of proportionate change in P and Y equals 10%. D) the net difference of proportionate change in P and Y equals 10%.
Rent controls are designed to protect consumers from high rents
a. True b. False Indicate whether the statement is true or false
The opportunity cost of postponing income to some future time depends on the interest rate
a. True b. False Indicate whether the statement is true or false