For an Imaginary Economy, the Consumer Price Index Was 62

question 347

Multiple Choice

For an imaginary economy, the consumer price index was 62.50 in 2004, 100.00 in 2005, and 160.00 in 2006. Which of the following statements is correct?

• A)If the basket of goods that is used to calculate the CPI cost $80 in 2004, then that basket of goods cost $128 in 2005.
• B)If the basket of goods that is used to calculate the CPI cost $90 in 2005, then that basket of goods cost $150 in 2006.
• C)The overall level of prices increased by 97.5 percent between 2004 and 2006.
• D)All of the above are correct.

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Definitions:

Intertype Competitors

Businesses that offer different products or services but compete for the same customers.

Dual Distributors

Companies or individuals that utilize more than one distribution channel or method to reach their consumers or the market.

Nonstore Formats

Retail channels that do not involve a traditional brick-and-mortar store, including online shopping, direct selling, and automatic vending.

Traditional Store

A physical retail outlet where customers can visit in person to purchase goods or services.