When the Cost of the CPI Market Basket Increases from One

question 38

Multiple Choice

When the cost of the CPI market basket increases from one year to the next,we know that

• A)on the average,current prices are less than past year prices.
• B)the quantities of the goods and services contained in the CPI market basket have increased on the average.
• C)the prices of the goods and services contained in the CPI market basket have increased on the average.
• D)on the average,current prices are below base year prices.
• E)either the quantities of the goods and services contained in the CPI market basket have increased on the average and/or the prices of the goods and services contained in the CPI market basket have increased on the average.

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Definitions:

Associations

Organized groups or societies formed for the purpose of pursuing common interests or activities.

Rewarding

Offering satisfaction, happiness, or benefits, usually as a result of one's efforts or achievements.

Nature and Roles

refers to the intrinsic characteristics of entities or individuals and the functions or positions they are expected to occupy in a system or society.

Dependence

The state of relying on or being controlled by someone or something else.