If the Consumer Price Index Changes from 120 in Year

question 70

Multiple Choice

If the Consumer Price Index changes from 120 in year one to 122 in year two, the rate of inflation in the intervening year is

• A)20 percent.
• B)0 percent.
• C)22 percent.
• D)2.0 percent.
• E)1.67 percent.

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Definitions:

Meta-Analysis

A statistical technique that combines the results of multiple studies to determine overall trends.

Significance Testing

A statistical method used to determine if the results of a study are likely to be true, or if they occurred by chance.

Cross-Sectional Research

A research method that involves analyzing data from a population, or a representative subset, at a specific point in time.

Theory

A well-substantiated explanation of some aspect of the natural world that is acquired through the scientific method and repeatedly tested and confirmed through observation and experimentation.