If the Consumer Price Index (CPI)is 200 One Year and 206

question 139

Multiple Choice

If the consumer price index (CPI) is 200 one year and 206 the next year,the annual rate of inflation as measured by the CPI is approximately _____.

• A)103 percent
• B)1 percent
• C)6 percent
• D)3 percent
• E)206 percent

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Definitions:

Unemployment

The situation in which individuals who are capable of working and are actively seeking work are unable to find employment.

U.S. Monetary Policy

The Federal Reserve's actions to regulate the nation's money supply and interest rates to achieve macroeconomic objectives like controlling inflation.

Inflation Rate

The inflation rate is the percentage increase in the general level of prices for goods and services over a period of time.

Money Supply Growth Rate

The rate at which the total amount of money in circulation or in existence in a country grows.