Table 24-1 The Table Below Lists Annual Consumer Price Index and Inflation

question 274

Multiple Choice

Table 24-1
The table below lists annual consumer price index and inflation rates for a country over the period 2005-2010. Assume the year 2005 is used as the base year.
-Refer to Table 24-1. What belongs in space A?

• A)14
• B)150
• C)144
• D)154

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Definitions:

APC

Average Propensity to Consume, which measures the fraction of income spent on consumption out of the total income.

Disposable Income

Financial endowment to households for the purpose of spending and saving after mandatory tax deductions.

Consumption

The use of goods and services by households. It represents the end-use of products and is a primary component of aggregate demand in an economy.

Disposable Income

The allocation of funds households have to spend and save, after income tax adjustments.