For an Imaginary Economy,the Consumer Price Index Was 115

question 51

Multiple Choice

For an imaginary economy,the consumer price index was 115.00 in 2004,126.50 in 2005,and 136.62 in 2006.Which of the following statements is correct?

• A)For this economy,the base year must be 2004.
• B)If the basket of goods that is used to calculate the CPI cost $75.00 in the base year,then that basket of goods cost $115.00 in 2004.
• C)This economy's rate of inflation for 2006 is 10.12 percent.
• D)None of the above is correct.

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Definitions:

Top Executives

Individuals who hold the highest-level managerial positions in an organization, responsible for strategic planning, decision-making, and overall direction.

Internal Constraints

Internal constraints are limitations that come from within an organization or system, such as resources, policies, or existing technologies that restrict operations or growth.

External Constraints

Factors outside an individual or organization that limit or shape the options available for decision-making or actions.

Top Management Group

signifies the senior-most executives or administrators in an organization, responsible for strategic decision-making and overall management.