Related to the Economics in Practice on p.451: The Consumer Price Index in the United States was 207.3 in 2007,215.3 in 2008 and 214.5 in 2009.If a retiree's pension is tied to the CPI,her monthly pension check would have ________ from 2007 to 2008,and ________ from 2008 to 2009.

Question

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When CPI increases, the retiree's pension check would increase as well. 
From 2007 to 2008, CPI increased from 207.3 to 215.3, indicating an increase in the cost of living. Therefore, the retiree's pension check would have increased as well. 
From 2008 to 2009, CPI decreased from 215.3 to 214.5 indicating a slight decrease in the cost of living. Therefore, the retiree's pension check would have decreased slightly as well. Therefore, the correct choice is B, which indicates that the pension check increased in 2007-2008 and decreased in 2008-2009.

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