If This Year the CPI Is 125 and Last Year

question 50

Multiple Choice

If this year the CPI is 125 and last year it was 120,then

• A)the cost of the CPI basket of goods and services has increased this year by 4.17 percent.
• B)the price level as measured by the CPI has increased by 4.17 percent.
• C)the inflation rate for this year is 4.17 percent.
• D)All of the above are correct.

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Definitions:

Unemployment

The situation where individuals who are willing and able to work are not currently employed.

Inflation

The magnitude of growth in the overall price points for goods and services, weakening the efficacy of spending power.

Government Spending

The total amount of money expended by a government on various sectors, including infrastructure, education, defense, and social services.

Net Exports

The difference between a country's total exports of goods and services and its total imports of goods and services over a specified period.