For an Imaginary Economy,the Consumer Price Index Was 115

question 51

Multiple Choice

For an imaginary economy,the consumer price index was 115.00 in 2004,126.50 in 2005,and 136.62 in 2006.Which of the following statements is correct?

• A)For this economy,the base year must be 2004.
• B)If the basket of goods that is used to calculate the CPI cost $75.00 in the base year,then that basket of goods cost $115.00 in 2004.
• C)This economy's rate of inflation for 2006 is 10.12 percent.
• D)None of the above is correct.

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Definitions:

Telegraphic Speech

A stage in language acquisition during early childhood, where speech is concise and contains only essential content words, omitting smaller function words and inflections.

Infant-Directed Speech

A speech pattern used by adults when talking to babies, characterized by higher pitch, slower rate, and exaggerated intonation.

Satisfaction

The feeling of pleasure or fulfillment that comes from achieving one's goals or desires.

Economic Resources

The assets, capital, and means of production that are used to create goods and services within an economy.