Suppose That the Consumer Price Index (CPI) Was 160 in Year

question 23

Multiple Choice

Suppose that the consumer price index (CPI) was 160 in Year X and 166 in Year Y, inflation during Year Y was approximately:

• A) zero; prices were stable.
• B) 3.8 percent.
• C) 6 percent.
• D) 66 percent.

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Definitions:

Developed Nations

Countries with high levels of industrialization, a higher standard of living, and advanced technological infrastructure.

Growth Slowing

A situation where the rate of expansion in an economy, market, or company starts to decelerate.

Great Recession

A significant global economic downturn that began in 2007 and lasted until 2009, marked by widespread financial crises, bank failures, and high unemployment rates.

Deficit

The amount by which a government's, company's, or individual's spending exceeds its income over a particular period of time.