You Know That the Consumer Price Index (CPI)at the Beginning

question 22

Multiple Choice

You know that the consumer price index (CPI) at the beginning of this year was 250 and the rate of inflation was 14 percent; this would mean the

• A) price of cat food increased by exactly 14 percent.
• B) CPI at the beginning of last year was 215.
• C) price of dog food probably fell.
• D) CPI at the end of the year was 285.
• E) rate of inflation next year will be more than 14 percent.

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Definitions:

Direct Tax

A type of tax levied directly on personal or corporate income.

GDP

The entire financial value of all conclusive goods and services brought forth within a nation over an established duration is encapsulated by Gross Domestic Product.

Consumption Sector

The part of the economy that involves the purchase and use of goods and services by households.

Social Security

A government program that provides financial support to people who are retired, disabled, or survivors of deceased workers.