If Everyone Buys the Same Goods Every Year and the Price

question 85

Multiple Choice

If everyone buys the same goods every year and the price of housing rises by 38 percent,it is

• A) certain the consumer price index (CPI)has increased,and if your nominal wage has risen by less than 38 percent,your real wage has fallen.
• B) certain the consumer price index (CPI)has increased,and if your nominal wage has risen by more than 38 percent,your real wage has risen.
• C) possible that the consumer price index (CPI)has increased,but it is certain your real wage has fallen.
• D) possible that the consumer price index (CPI)has increased; however,it is certain your real wage has risen if,and only if,your nominal wage increased by more than 19 percent because housing accounts for exactly 50 percent of the CPI.
• E) not possible to tell what happened to the consumer price index (CPI)because other than for housing,we do not know what happened to the prices of any of the other goods.

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Definitions:

Circuit Power Factor

A measure of the efficiency of power usage in an electrical circuit, defined as the ratio of real power flowing to the load to the apparent power in the circuit.

Applied Voltage

The electrical potential difference deliberately applied across a component or circuit to drive current through it.

RLC Series Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in series, displaying complex impedance characteristics.

Phase

A term describing the position of a point in time on a waveform cycle.