If the consumer price index were 301 in 1983 and 311 in 1984 based on an index of 100 for 1967, then it could be concluded that
A) inflation and prices were both high relative to 1967 inflation of about 4 percent and 1967 prices, respectively.
B) inflation was high, relative to a comfortable rate of 4 percent, but prices were not especially high when the 15-year span from 1967 to 1983 is considered.
C) inflation was low, relative to a comfortable rate of 4 percent, but prices were actually 311 percent higher than just 16 years before.
D) inflation was low, relative to a comfortable rate of 4 percent, but prices were actually 211 percent higher than they were in 1967.
E) none of the above.

Question

Quizplus · Accepted Answer

The CPI increased from 301 to 311 from 1983 to 1984, indicating an inflation rate of about 3.32%, which is low relative to a 4% rate. Prices in 1984 were 211% higher than in 1967 (311 - 100 = 211).

If the Consumer Price Index Were 301 in 1983 and 311