If the CPI Was 132

question 136

Multiple Choice

If the CPI was 132.5 at the end of last year and 137.5 at the end of this year, the inflation rate over these two years was

• A) 3.6 percent.
• B) 3.8 percent.
• C) 5.0 percent.
• D) None of the above answers is correct.

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Definitions:

Adjustment

The process of modifying something to achieve a desired outcome, often used in the context of economic policies, mechanisms, or personal changes.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Government

The organization, or system of governance, that exercises authority and performs the functions of governing a political state or community.

Market Price

The present cost at which a service or asset is available for purchase or sale.