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.

---

Definitions:

Long-Term Paid Leaves

Employment benefits that allow workers to take an extended period off work while still receiving pay, often used for health-related reasons.

Wealthy Nations

Countries characterized by a high level of economic development, significant gross national income, and often a high standard of living for their citizens.

Caregiving

Providing support and assistance, especially in tasks related to daily living and health care, to individuals unable to care for themselves due to illness, disability, or age.

CPR

Cardiopulmonary resuscitation, an emergency procedure combining chest compressions with artificial ventilation to maintain circulatory flow and oxygenation during cardiac arrest.