For an imaginary economy, the consumer price index was 115.00 in 2004, 126.50 in 2005, and 136.62 in 2006 . Which of the following statements is correct?
a. For this economy, the base year must be 2004.
b. If the basket of goods that is used to calculate the CPI cost $75.00 in the base year, then that basket of goods cost $115.00 in 2004.
c. This economy's rate of inflation for 2006 is 10.12 percent.
d. None of the above is correct.
d
Economics
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In an informed and voluntary exchange,
a. both parties receive something they value more than what they gave up. b. both parties place an equal value on what they received and what they gave up. c. neither party can gain more than the other. d. one trader can gain only at the expense of the other.
Economics
In a self-regulating economy, wages will fall and prices will rise when there is an inflationary gap
Indicate whether the statement is true or false
Economics