If the CPI Was 132

question 320

Multiple Choice

If the CPI was 132.5 at the end of last year and 140.2 at the end of this year, the inflation rate over these two years was

• A) 5.4 percent.
• B) 5.8 percent.
• C) 4.4 percent.
• D) 7.7 percent.

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Definitions:

Equilibrium Level

The state in which market supply and demand balance each other, resulting in stable prices and quantities.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.

Quantity Supplied

The quantity of a product or service that sellers are ready and capable of offering for sale at a specific price during a certain timeframe.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.