At the End of Last Year, the CPI Equaled 120

question 102

Multiple Choice

At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year?

• A) 6 percent
• B) 10 percent
• C) 12 percent
• D) None of the above answers are correct because more information is needed to calculate the inflation rate.

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Definitions:

Organization

An entity comprising multiple people structured in a specific way to achieve a collection of goals or objectives.

Needs

Needs refer to the basic requirements or essentials that individuals must have to survive and function, such as food, shelter, and safety.

Intangibility

A characteristic of services that means they cannot be seen, tasted, felt, heard, or smelled before they are bought.

Subjective Criteria

Decision-making factors based on personal preferences, opinions, or judgments rather than on objective data.