Suppose the Value of the CPI Is 1

question 31

Multiple Choice

Suppose the value of the CPI is 1.100 in year one, 1.210 in year two, and 1.331 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)increasing; increasing
• B)constant; increasing
• C)constant; decreasing
• D)increasing; decreasing

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Definitions:

Legitimate Power

The authority a person or position holds within an organization, recognized as rightful by its members, which allows them to influence others.

Managerial Authority

The power vested in managers to make decisions and direct subordinates within an organization.

Charismatic Personality

A set of personal attributes that enable an individual to exert significant influence or charm over others, often leading to strong leadership or followership.

High-Ranking Title

A designation or position of high status within an organization that signifies authority, responsibility, or professional achievement.