Suppose the Value of the CPI Is 1

question 72

Multiple Choice

Suppose the value of the CPI is 1.100 in year one, 1.122 in year two, and 1.133 in year three.Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three.The price level is increasing, the inflation rate is _______, and the relative price of computers is _________.

• A)decreasing; increasing
• B)increasing; increasing
• C)decreasing; decreasing
• D)increasing; decreasing

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Definitions:

Individualistic Cultures

Cultures in which people are considered fundamentally independent and which value standing out by achieving private goals.

Physical Peak

The age or period in life at which an individual achieves their maximum physical health, strength, and performance capabilities.

Physical Function

A person's ability to perform tasks and activities that require physical effort.

Identity Crisis

A period of uncertainty and confusion in which a person's sense of identity becomes insecure, typically due to a change in their expected aims or role in society.