Consider a Nation in Which the Price Index Last Year

question 6

Multiple Choice

Consider a nation in which the price index last year was 130 and this year it is 150.Which statement is correct?

• A) Inflation was 20 percent this year.
• B) Deflation was 20 percent this year.
• C) Housing prices must have risen.
• D) Inflation was 15 percent this year.
• E) Deflation was 15 percent this year.

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Definitions:

Limbic System

A group of several brain structures located primarily under the cortex and involved in learning, emotion, memory, and motivation.

Cerebral Cortex

The outer layer of the brain, involved in complex functions such as thought, perception, language, and consciousness.

Cerebellum

A part of the brain located at the back of the skull, crucial for coordination, precision, and timing of movements.

Cerebrum

The largest part of the brain, responsible for voluntary activities, speech, sensation, vision, hearing, thought, and memory.