If the CPI Is 120 in 2005 and 150 in 2006

question 93

Multiple Choice

If the CPI is 120 in 2005 and 150 in 2006, what is the rate of inflation over this period?

• A) 8%
• B) 20%
• C) 25%
• D) 30%

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Definitions:

Nonrivalry

A characteristic of a good where one person's consumption does not diminish the ability of others to consume the same good.

Public Good

A commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Voluntarily Pay

Refers to making a payment or contribution freely without coercion, typically in contexts where payments are not legally mandated.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.