If 51% of All Goods in the Consumer Price Index

question 83

Multiple Choice

If 51% of all goods in the consumer price index (CPI) became more expensive and 49% became cheaper:

• A) inflation would certainly occur.
• B) deflation would most likely occur.
• C) inflation or deflation could occur, depending on the weight of these goods in the basket of goods and the actual percent changes.
• D) deflation would certainly occur if the price of housing was one of the goods that fell.
• E) inflation would occur if the goods whose prices increased did so by the same percentage as the goods whose prices decreased.

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Definitions:

Anthony Johnson

An African American who became one of the first African property owners and one of the first to have his right to own a slave legally recognized in the British American colonies.

Olaudah Equiano

An African writer and abolitionist who gained freedom from slavery and wrote an autobiography detailing his experiences, significantly influencing the abolitionist movement in Britain.

Jamestown

The first permanent English settlement in North America, founded in 1607 in present-day Virginia.

Witch Trials

Legal proceedings and persecutions, most famously in Salem, Massachusetts in 1692, targeting individuals accused of witchcraft, often resulting in conviction and execution.