If the CPI Was 125 This Year and 120 Last

question 102

Multiple Choice

If the CPI was 125 this year and 120 last year,then

• A)the cost of the CPI basket of goods and services increased by 4.2 percent this year.
• B)the price level increased by 4.2 percent this year.
• C)the inflation rate for this year was 4.2 percent.
• D)All of the above are correct.

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Definitions:

Financial Disadvantage

A situation in which a person or entity is at a deficit compared to others in terms of financial resources or capabilities.

Variable Expenses

Expenses that vary in relation to a company's operations.

Fixed Expenses

Expenses that remain constant regardless of production or sales volume, including items like lease payments, employee wages, and insurance costs.

Financial Advantage

The benefit gained from making economic decisions that result in increased wealth or financial health.