The Price Index Was 92 in 2014,and the Inflation Rate

question 65

Multiple Choice

The price index was 92 in 2014,and the inflation rate was 8.7 percent between 2013 and 2014.The price index in 2013 was

• A)100.0.
• B)100.7.
• C)83.3.
• D)84.6.

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Definitions:

Built-In Stability

refers to automatic fiscal policies and regulations that stabilize economic fluctuations without additional government intervention.

Real GDP

The measure of a country's economic output adjusted for price changes and inflation.

Tax Revenues

The income that is gained by governments through taxation, a primary source of public finance.

Transfer Payments

Payments made by the government to individuals without any expectation of a direct return, such as welfare, social security, and unemployment benefits.