If the Consumer Price Index (CPI) at the End of Year

question 178

Multiple Choice

If the consumer price index (CPI) at the end of year one was 100 and was 108 at the end of year two, the inflation rate during year two was

• A) zero; the CPI of 100 indicates that prices were stable.
• B) 8 percent.
• C) 5 percent.
• D) 108 percent.

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Definitions:

Contract Law

The body of law that governs agreements made between parties, specifying the rights, obligations, and remedies that arise from those agreements.

Moral Standard

Principles guiding what is considered right or wrong behavior within a society.

State Legislature

The legislative branch of state government in the United States, responsible for making and passing laws at the state level.

Farmers' Subsidies

Government financial support provided to farmers to supplement their income and manage the supply of agricultural commodities.