Assume that between 2012 and 2013,the CPI of a country rose from 182 to 185.If household incomes rose by 3 per cent during that period of time,then which of the following is true?
A) The purchasing power of household income rose between 2012 and 2013.
B) The purchasing power of household income fell between 2012 and 2013.
C) The purchasing power of household income remained constant between 2012 and 2013.
D) The CPI cannot be used to determine how the purchasing power of household income changes over time.
Correct Answer:
Verified
Q21: If nominal wages rise slower than the
Q25: What does the producer price index (PPI)measure?
A)The
Q31: How many broad categories of goods and
Q34: The 'GDP deflator includes the price changes
Q36: If a disease affected apple trees in
Q39: If nominal wages rise faster than the
Q140: Which of the following is the smallest
Q150: Looking at the following table,what is the
Q190: The inflation rate measures the percentage increase
Q213: List three different price indices and explain
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents