Use the Consumer Price Index Below to Answer the Question

question 261

Multiple Choice

Use the Consumer Price Index below to answer the question. $$\begin{array}{l}\text { Average Annual Consumer Price Index (1982-1984 = 100) }\\\begin{array} { c | c | c | c | c | c } \text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \\\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \\1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \\1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \\1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \\1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \\1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \\1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \\1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \\1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6\end{array}\end{array}$$
-Suppose you needed $56,000 to maintain a particular standard of living in 2000. How much would you have needed in 1990 to maintain the same standard of living?

• A)$74,000
• B)$44,000
• C)$43,000
• D)$41,000

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Definitions:

Economic Worry

Concern or anxiety about the current or future state of the economy, often due to factors like inflation, unemployment, or recession.

Stock Market

A marketplace where stocks (shares of ownership in businesses) are bought and sold, providing companies with access to capital and investors with a slice of ownership.

Depression

A severe and prolonged downturn in economic activity, characterized by significant decline in GDP, high unemployment, falling prices, and reduced levels of trade and investment.

Banks

Financial institutions that accept deposits from the public, make loans, and provide various financial services, including currency exchange and wealth management.