Multiple Choice Identify the letter of the choice that best completes the statem
ID: 1116756 • Letter: M
Question
Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. lThe consumer e index is used to s in the level of wholesale 2. which The term "inflation" is used to describe a situation in overall level of in the ec 3. The CPI is a measure of the overall cost of and services and scrvices od in the s on the New York Stock Ex 4. Which of the follo agencies calculates the CPI? National Price Board Office 5. The inflation rate is calculated determining the percentage increase in the price index from the preceding 6. If this year the CPI is 125 and last year it was 120, then we know that have become more c inflation rate has increased Il of the above are correct 7. By far the largest category of goods and services in the CPI basket is food andExplanation / Answer
1. b option is correct since CPI is measure of cost of living of consumer
2. a option is correct because inflation is the rate of increase of prices of goods and services
3. b option is correct because CPI is measure of overall cost of goods and services bought by a typical consumer
4. c option is correct because CPI is measured by Bureau of labor statistics in US
5. d is correct because inflation rate is percentage increase in price index from preceding period
6. c is correct because increase in CPI is measure of increase in inflation rate
7.d is correct because a basket of typical consumer consists of foods and beverages bought by a typical consumer
8. b option is correct because CPI is a perfect measure of cost of living
9. a option is correct because CPI and GDP deflator both are measure of inflation rate, and generally indicate same numbers, thus move together.
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