A CPI that equals 1.34 in 2008 (when 2000 is the base year) means that:
A. the average level of prices is 34 percent higher in 2008 than in the base year.
B. prices in 2008 are 34 percent higher than in 2007.
C. the CPI equals $1.34 in 2008.
D. the inflation rate in 2008 is 134 percent.
Answer: A
You might also like to view...
A market economy allocates resources primarily in accordance with orders from government bureaucrats.
Answer the following statement true (T) or false (F)
The cyclical deficit is
A) the amount by which the actual government budget deficit exceeds the structural deficit. B) the amount by which structural deficit exceeds the actual budget deficit. C) the same as the structural deficit. D) what the budget deficit would be if the economy were operating at the natural real GDP level.
Stock prices change with surprises
Indicate whether the statement is true or false
Advocates of government intervention appreciate the self-correcting nature of the economy
Indicate whether the statement is true or false