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Suppose That the Consumer Price Index Rises 3% from This

Question 8

Multiple Choice

Suppose that the Consumer Price Index rises 3% from this year to next year.And suppose that the price of your favorite pizza rises 3% over that time as well.Which of the following is TRUE?


A) The nominal price of pizza has increased.
B) The real price of pizza has increased.
C) The real price of pizza has fallen.
D) The nominal price of pizza has remained the same.

Correct Answer:

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