Suppose the Value of the CPI Is 1

question 72

Multiple Choice

Suppose the value of the CPI is 1.100 in year one, 1.122 in year two, and 1.133 in year three.Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three.The price level is increasing, the inflation rate is _______, and the relative price of computers is _________.

• A)decreasing; increasing
• B)increasing; increasing
• C)decreasing; decreasing
• D)increasing; decreasing

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Definitions:

Establishment Clause

A clause in the First Amendment of the U.S. Constitution that prohibits the government from making any law respecting an establishment of religion, thereby ensuring the separation of church and state.

New York Times

A prominent American newspaper and media company known for its comprehensive news coverage, including politics, international affairs, and culture.

Sullivan

Refers to New York Times Co. v. Sullivan, a landmark 1964 Supreme Court case that established the "actual malice" standard for press freedom in cases of defamation of public figures.

Malicious Material

Content or software intended to harm or exploit any programming errors or vulnerabilities in computers or networks.