One Reason the CPI Is Monitored Very Closely by Government

question 20

Multiple Choice

One reason the CPI is monitored very closely by government, businesses, and workers is that

• A) it indicates whether we are running a budget surplus or a deficit.
• B) some wages, interest rates, tax rates, and government benefits are tied to changes in the value of the CPI.
• C) it is the best measure of worker productivity in the service sector.
• D) the gross domestic product is computed from the reported increases in the CPI.

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Definitions:

Lenin

A Russian revolutionary leader, political theorist, and founder of the Soviet Union, who played a key role in the Bolshevik Revolution of 1917.

Revolutionary Party

A political party that seeks to implement radical changes in society and governance, often through revolutionary means.

French Third Republic

Denotes the republican government of France from 1870, after the fall of the Second Empire, to 1940, when France was occupied by Nazi Germany during World War II.

Royalists

Royalists are supporters of a king or royal government, especially in the context of civil wars or revolutions where monarchy is challenged.