If the PCE Deflator Increased from 88 to 99 in One

question 85

Multiple Choice

If the PCE deflator increased from 88 to 99 in one year, the rate of consumer inflation is:

• A)10.0%.
• B)11.0%.
• C)12.5%.
• D)13.4%.

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Definitions:

Elastic Demand

A situation in economics where the quantity demanded of a good or service changes significantly as its price changes.

Many Substitutes

Refers to a situation where numerous alternative products or services are available for consumers, often leading to competitive markets.

Inelastic Demand Curve

A demand curve that shows a small change in quantity demanded despite large changes in price, indicating consumers' necessity or lack of substitutes.

Motor Vehicles

Wheeled vehicles that are motorized or mechanically propelled, used for transportation of people, goods, or both.