If the CPI Was 110 This Year and 100 Last

question 113

Multiple Choice

If the CPI was 110 this year and 100 last year,then

• A)the cost of the CPI basket of goods and services increased by 10 percent this year.
• B)the price level increased by 110 percent this year.
• C)the inflation rate for this year was 10 percent higher than the inflation rate for last year.
• D)All of the above are correct.

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Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results across multiple occasions and observers.

Factor Analytic

A method used in statistics and psychology to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.

Rational

Based on logic or reason; capable of coherent thought processes and sound judgment.

Empirical

Based on observation or experiment rather than theory or logic, used in contexts where knowledge is derived from empirical evidence.