If the Consumer Price Index Changes from 120 in Year

question 63

Multiple Choice

If the Consumer Price Index changes from 120 in year one to 144 in year two, the rate of inflation in the intervening year is

• A)10 percent.
• B)12.5 percent.
• C)20 percent.
• D)25 percent.
• E)30 percent.

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Definitions:

Pollution Permits

Licenses issued by governments that allow the holder to emit a specific amount of pollution; used as a way to control and reduce environmental harm.

Pollution Reduction

Actions or policies aimed at decreasing the amount of pollutants released into the environment.

Government Caps

Maximum limits set by the government on prices, wages, or other economic variables to control the economy.

Total Cost

The total of all expenses involved in creating goods or services, encompassing both constant and changing costs.