The Steps Involved in Calculating the Consumer Price Index and the Inflation

question 19

Multiple Choice

The steps involved in calculating the consumer price index and the inflation rate, in order, are as follows:

• A)Choose a base year, update the basket, find the prices, estimate the basket's cost, compute the index, and compute the inflation rate.
• B)Choose a base year, fix the basket, find the prices, compute the inflation rate, compute the basket's cost, and compute the index.
• C)Fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index, and compute the inflation rate.
• D)Fix the basket, find the prices, compute the inflation rate, compute the basket's cost, and choose a base year and compute the index.

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Definitions:

Mesomorph

A body type characterized by a muscular frame and the ability to gain muscle and maintain a low body fat percentage easily.

-Morph

A suffix meaning form or shape, used in various biological and scientific terms to denote shape or form variations.

Inguinal

Relating to the groin, the area where the thigh meets the abdomen.

Proximal

Situated near the center of the body or the point of attachment.