Suppose the base year of the CPI is 2017, and the CPI calculated for 2019 was 102. What is the correct interpretation of this number?
A) The cost of living for a typical consumer decreased by 2 percent since 2017.
B) The cost of living for a typical consumer increased by 1.9 percent since 2017.
C) The cost of living for a typical consumer is 2 percent higher than it was in 2017.
D) The cost of living is unchanged; the CPI does not measure changes in the price level.
Correct Answer:
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Q25: Which of the following is not a
Q26: The CPI-U does not include goods consumed
Q27: The CPI measures changes in the price
Q28: The CPI attempts to:
A) balance out the
Q29: The CPI is based on an:
A) average
Q31: Product innovation:
A) presents a problem when calculating
Q32: Which of the following situations is an
Q33: When the CPI is less than 100:
A)
Q34: The consumer price index (CPI):
A) measures the
Q35: One of the biggest challenges in calculating
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