The CPI for "Personal Computers and Peripheral Equipment" in June

question 31

Multiple Choice

The CPI for "personal computers and peripheral equipment" in June 2006 was 10.7 (1982-1984 = 100) . Interpret this index.

• A)There was no significant increase in the price of "personal computers and peripheral equipment."
• B)The price of "personal computers and peripheral equipment" increased 10.7%.
• C)The price of "personal computers and peripheral equipment" decreased 89.3%.
• D)If the average price of a computer in 1982-1984 was $3,000,the CPI for "personal computers and peripheral equipment" would predict that the price of a computer in June 2006 would be $893.

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