At the End of Last Year, the CPI Equaled 120

question 15

Multiple Choice

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

• A) 10 percent
• B) 6 percent
• C) 12 percent
• D) None of the above answers are correct because more information is needed to calculate the inflation rate.

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Definitions:

Social Security

A government program that provides benefits to retirees, disabled individuals, and their families based on earnings records.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Time Tracking

The process of recording and measuring the amount of time spent on tasks or activities.

Subcontractors

Independent workers or companies hired on a contractual basis to perform part of the work assigned in a project.