If Everyone Buys the Same Goods Every Year and the Price

question 15

Multiple Choice

If everyone buys the same goods every year and the price of housing rises by 38%:

• A) it is certain the consumer price index (CPI) has increased; and if your nominal wage has risen by less than 38%, your real wage has fallen.
• B) it is certain the CPI has increased; and if your nominal wage has risen by more than 38%, your real wage has risen.
• C) it is possible that the CPI has increased, but it is certain your real wage has fallen.
• D) it is possible that the CPI has increased.However, it is certain your real wage has risen, if and only if, your nominal wage increased by more than 19% because housing accounts for exactly 50% of the CPI.
• E) it is not possible to tell what happened to the CPI because other than for housing, we do not know what happened to the prices of any of the other goods.

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Definitions:

Naturalistic Observation

A research method in which subjects are observed in their natural environment without any interference from the researchers.

Natural Setting

An environment or context that is not controlled or manipulated by researchers, where natural behaviors occur.

Technological Equipment

Tools and machines developed through technological processes and used for specific applications, particularly in the fields of science, engineering, and industry.

Psychiatric Social Worker

A professional specializing in mental health care, providing assessment, counseling, and coordination of services for individuals with psychiatric conditions.