Suppose a Basket of Goods and Services Has Been Selected

question 84

Multiple Choice

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been chosen as the base year.In 2002,the basket's cost was $76.00; in 2004,the basket's cost was $79.50; and in 2006,the basket's cost was $85.00.The value of the CPI was

• A) 100 in 2002.
• B) 108 in 2004.
• C) 120 in 2006.
• D) at least 118 in 2007.
• E) no more than 90 in 2001.

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Definitions:

Truth

A concept referring to the state or quality of being true, accurate, or in accordance with fact or reality.

Endorphins

Neurochemicals produced by the body that reduce pain and boost happiness, often referred to as natural painkillers.

Pain Sensation

The unpleasant sensory and emotional experience associated with actual or potential tissue damage.

Heroin

An illegal, highly addictive opioid drug derived from morphine, known for its euphoric effects.