Suppose the CPI Last Year Is 121 and the CPI

question 33

Multiple Choice

Suppose the CPI last year is 121 and the CPI this year is 137. The correct method to calculate the inflation rate is

• A) 137 × 121 = 258.
• B) (137 - 121)/100 = 0.16.
• C) (137/121) × 100 = 113.2.
• D) [(137 - 121)/121] × 100 = 13.2.

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Definitions:

Automatic System

A part of the mind that operates involuntary, unconsciously, and quickly, controlling most of our behaviors and cognitive processes.

Infomercial Claims

Statements or assertions made during infomercials, often about the benefits or features of a product, which may not always be fully substantiated.

Downward Comparisons

A social comparison strategy where individuals compare themselves to others who are less fortunate or worse off, often to feel better about their own circumstances.

Upward Comparisons

The process of comparing oneself to others who are perceived to be better off or superior in some way, which can affect self-esteem and motivation.