If the CPI This Year Is 220 and Was 200

question 390

Multiple Choice

If the CPI this year is 220 and was 200 in last year, the annual inflation rate between the two years is

• A) 20 percent.
• B) 10 percent.
• C) 2 percent.
• D) 5 percent.

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Definitions:

Downward-sloping

Downward-sloping describes a curve or line on a graph that exhibits a decline from left to right, often used to illustrate decreasing prices or quantities in economics.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various prices, typically downward sloping.

Marginal Utility

The shift in happiness or benefit a person receives from using one more unit of a particular product or service.

All-you-can-eat

A service often provided by restaurants where customers can consume as much food as they want for a fixed price.