If the Consumer Price Index Falls from 120 to 116

question 212

Multiple Choice

If the consumer price index falls from 120 to 116 in a particular year, the economy has experienced

• A) inflation of 4 percent.
• B) inflation of 3.33 percent.
• C) deflation of 3.33 percent.
• D) deflation of 4 percent.

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Variation

The occurrence of differences or deviations within a population, which can be genetic, phenotypic, or behavioral, among individuals or groups.

Median

A statistical measure that represents the middle value in a dataset, where half the numbers are above and half are below.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution. It aims to provide an accurate description of the entire dataset.