If the CPI Is Currently 202,what Does This Tell You

question 164

Multiple Choice

If the CPI is currently 202,what does this tell you about inflation between last year and this year?

• A)There was deflation in the economy between this year and last year.
• B)Inflation in the economy between this year and last year was 2%.
• C)Inflation in the economy between this year and last year was 102%.
• D)The CPI measures only the level of prices in a given year,not the percentage change in prices from one year to the next.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted based on the investor's share of the investee's profits or losses.

Acquisition Combination

The process of uniting two or more entities into one, typically through the purchase of one by another, and integrating their operations.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after intercompany transactions have been eliminated, presented in a single figure.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.