Suppose the Value of the CPI Is 1

question 31

Multiple Choice

Suppose the value of the CPI is 1.100 in year one, 1.210 in year two, and 1.331 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)increasing; increasing
• B)constant; increasing
• C)constant; decreasing
• D)increasing; decreasing

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Definitions:

Acid Rain

Precipitation that has been made acidic by atmospheric pollution, leading to environmental harm, particularly in forests and lakes.

Risk Analysis

The process of identifying, evaluating, and prioritizing risks followed by coordinated efforts to minimize or control their impact.

Ecological Problem

Issues that arise when the natural balance of ecosystems is disturbed, leading to environmental harm and decreased biodiversity.

Industrial Smog

A type of air pollution generated from industrial operations and fossil fuel combustion, characterized by a mix of particulates and gases.