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:

Half-life

The time required for a quantity to reduce to half its initial value, commonly used in nuclear physics to describe the decay of radioactive substances.

Alpha Particle

A type of radioactive emission consisting of two protons and two neutrons, equivalent to a helium nucleus.

Beta Particle

A beta particle is a high-energy, high-speed electron or positron emitted by certain types of radioactive nuclei during radioactive decay.