I the Concept of Real Income Is Sometimes Called Deflated

question 7

Multiple Choice

i. The concept of real income is sometimes called deflated income or income expressed in constant dollars and the CPI is called the deflator.
ii. To deflate sales, the actual sales are multiplied by the wholesale price index and the result multiplied by 100.
Iii) The CPI serves only one major function: as an economic indicator of the rate of inflation.

• A) (i) is a correct statement, but (ii) and (iii) are incorrect statements
• B) (i) and (ii) are correct statements, but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) All statements are false

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Definitions:

Predict

To declare or indicate in advance; especially, to foretell on the basis of observation, experience, or scientific reason.

Confidence

The degree to which one can feel assured about an estimate, prediction, or result, often quantified in statistical analysis as a confidence interval.

Winnings

The amount of money or prizes won in a game, lottery, or other competition.

Education

Education is the systematic process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits through various forms such as teaching, training, storytelling, discussion, and directed research.