Suppose the base year of the CPI is 2010, and the CPI calculated for 2012 was 102. What is the correct interpretation of this number?
A. Average prices in the economy have increased by 102 % since 2010.
B. Average prices in the economy have increased by 1.9 % since 2010.
C. The cost of living for a typical consumer is 2 % higher than it was in 2010.
D. The average goods of all consumers has risen an average of 2 % from 2010 to 2012.
C. The cost of living for a typical consumer is 2 % higher than it was in 2010.
You might also like to view...
Describe the channels through which open market purchases by the Fed affects output in an open economy
What will be an ideal response?
One of the limitation of Five Forces is that they
a. Reduce producer surplus b. For one firm to increase profit, the profit of another participant must decrease c. Does not provide a firm with sustainable competitive advantage d. Both b and c