If the Consumer Price Index (CPI)was 100 in the Period

question 64

Multiple Choice

If the consumer price index (CPI) was 100 in the period of 1982-1984,then

• A) there would be deflation.
• B) this period was the base period.
• C) this period was characterized by menu costs.
• D) this period was economically optimal.
• E) this period was inflationary.

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Definitions:

Credits

Accounting entries that increase liabilities or equity or decrease assets, representing the opposite of debits.

Owner Invests

occurs when the owner of a business contributes assets, commonly in the form of cash or equipment, into the business for its use.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment.

Revenue

Income generated from normal business operations and includes discounts and deductions for returned merchandise.