Suppose That the Retail Price Index Is Equal to 87

question 85

Multiple Choice

Suppose that the Retail Price Index is equal to 87 for 2015. If the base index (2012) had a value of 100, which of the following is likely to be true?

• A) On average, prices rose by 13 per cent since 2012.
• B) All prices fell by 13 per cent since 2012.
• C) All prices rose by 87 per cent since 2012.
• D) An average, prices fell by 13 per cent since 2012.

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Definitions:

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Appearances

The way in which persons or things seem to the eye or mind; the outward aspect or impression.

Parmenides

A pre-Socratic Greek philosopher who argued that reality is unchangeable, and all change is an illusion.

Unreal

Something that is imagined or fantasized and not found in reality; often used in discussions of philosophy, fiction, and art.