Since World War II,the Consumer Price Index Has Increased by an Average

question 105

Multiple Choice

Since World War II,the consumer price index has increased by an average of _____.

• A)1.4 percent per year
• B)2.1 percent per year
• C)6.4 percent per year
• D)5.6 percent per year
• E)3.5 percent per year

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Definitions:

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to sell at a given overall price level in a given time period.

Real GDP

The production of goods and services valued at constant prices.

Credibility

The quality of being trusted and believed in, often based on a reputation for honesty and reliability.

Indexed

A term referring to the adjustment of income, benefits, or prices in accordance with changes in a price index, typically to preserve purchasing power.