Suppose That the Consumer Price Index for a Particular Economy

question 64

Multiple Choice

Suppose that the Consumer Price Index for a particular economy rose from 110 to 120 in year 1, 120 to 130 in year 2, and 130 to 140 in year 3. We could conclude that this economy is experiencing

• A) accelerating inflation.
• B) deflation.
• C) disinflation.
• D) a constant rate of inflation.

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Definitions:

Auto Repairs

The process of fixing or restoring parts of a vehicle to proper condition after damage or wear.

Gasoline

A combustible fluid obtained from petroleum, primarily utilized as a fuel in engines that operate through internal combustion.

Cost Function

An equation that calculates the total cost of production based on the quantities of inputs used.

Output

The total amount of goods or services produced by a company or a production process.