Suppose the base year of the CPI is 2010, and the CPI calculated for 2012 was 102. What is the correct interpretation of this number?
A) Average prices in the economy have increased by 102 % since 2010.
B) Average prices in the economy have increased by 1.9 % since 2010.
C) The cost of living for a typical consumer is 2 % higher than it was in 2010.
D) The average goods of all consumers has risen an average of 2 % from 2010 to 2012.
Correct Answer:
Verified
Q2: A dollar's value can change:
A) over time.
B)
Q3: The consumer price index:
A) measures the increase
Q4: A market basket:
A) looks like a really
Q5: A market basket:
A) is a tool devised
Q7: When we say the cost of living
Q8: The market basket approach:
A) gives us a
Q9: By using the market basket approach:
A) it
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