A CPI That Equals 1

question 111

Multiple Choice

A CPI that equals 1.34 in 2005 (when 2000 is the base year) means that:

• A) prices in 2005 are 34 percent higher than in 2004.
• B) the CPI equals $1.34 in 2005.
• C) the inflation rate in 2005 is 134 percent.
• D) the average level of prices is 34 percent higher in 2005 than in the base year.

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Definitions:

Concert of Europe

A series of alliances and conferences among European states in the 19th century aimed at maintaining balance and preventing wars.

Great Powers

The most powerful and influential countries in the world, typically with significant military, economic, and diplomatic influence.

Status Quo

The existing state of affairs or the current condition or situation, often referring to a stable or unchanging condition in societal or political contexts.