The Consumer Price Index (CPI)was 180 for 2009 When Using

question 45

Multiple Choice

The consumer price index (CPI) was 180 for 2009 when using 1995 as the base year (1995 = 100) .Now suppose we switch and use 2009 as the base year (2009 = 100) .What is the CPI for 1995 with the new base year?

• A)18.0
• B)55.6
• C)80.0
• D)111.2

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Definitions:

Natural Rate

The rate of output at which an economy operates without inflationary pressures, often referred to as the natural rate of unemployment.

Phillips Curve

A concept in economics that indicates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Inflation Rate

The rise in the average cost of goods and services throughout an economy over a specified period.

Money Supply Growth

The rate at which the total amount of monetary assets in an economy increases over time, which can influence inflation, interest rates, and economic growth.