If the Consumer Price Index Was 100 in the Base

question 179

Multiple Choice

If the consumer price index was 100 in the base year and 112 the following year, what was the inflation rate?

• A) 1.2 percent
• B) 11.2 percent
• C) 12 percent
• D) 112 percent

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Definitions:

Fixation

An obsessive focus or attachment to certain behaviors, people, or developmental stages, often hindering emotional development.

Mental Set

A cognitive tendency to approach situations in a fixed way based on previous experiences, potentially inhibiting problem-solving.

Confirmation Bias

The bias towards selecting, decoding, favoring, and reminiscing over data that corroborates one's prior beliefs or conjectures.

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others.