Suppose the Base Year of the CPI Is 2017, and the CPI

question 3

Multiple Choice

Suppose the base year of the CPI is 2017, and the CPI calculated for 2019 was 102. What is the correct interpretation of this number?

• A) The cost of living for a typical consumer decreased by 2 percent since 2017.
• B) The cost of living for a typical consumer increased by 1.9 percent since 2017.
• C) The cost of living for a typical consumer is 2 percent higher than it was in 2017.
• D) The cost of living is unchanged; the CPI does not measure changes in the price level.

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Definitions:

Faster Response

The ability to react and adapt quickly to changes in the market or customer demand, often enhancing customer satisfaction and competitive edge.

Product Characteristics

The attributes or features of a product that define its nature, functionality, and usability for the end user.

Network Requirements

Specifications and criteria that need to be met for the infrastructure and operations of a network, such as a telecommunications or logistics network, to function effectively.

Distribution Network

The system of warehouses, transportation options, and distribution centers that helps in moving products from manufacturers to consumers.