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Question: 19 if the cpli was 128 at the end of...

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19) If the CPlI was 128 at the end of 2011 and 136 and the end of 2012, what was the inflation rate in 20127 A) 6.25 percent B) 4.2 percent C) 9.4 percent D) 5.9 percent E) 8 percent 20) The cost of the CPI basket in base-period prices is $200 and the cost of the CPI basket in current-period prices is $450. The CPI in the current year is A) 250. B) 450. C) 44.44 D) 225 E) 300 21) The inflation rate measures A) the annual percentage change in the wage rate. B) the annual percentage change in the price level. C) the annual change in the price level. D) the average price level. E) none of the above. Use the table below to answer the following questions. Table 21.3.1 Suppose a simple economy produces three goods only. The price and output data for some selected years are shown below. Price Quantity Quantity (dollars) 2002 0.75 1.25 2.00 (dollars) (number) 2002 2012 1.10100 2.10 3.00 (number) 2012 120 280 190 Po 300 200 Cucumbers 22) Refer to Table 21.3.1. The reference base period is 2002. The CPI in 2012 is D) 1,340. A) 100 B) 63. C) 158. E)96. 23) Refer to Table 21.3.1. The reference base period is 2002. Which one of the following statements is true? A) It costs 158 times more in 2012 than it does in 2002 to buy the same market basket B) The inflation rate in 2012 is greater than the inflation rate in 2002. C) The inflation rate in 2002 is greater than the inflation rate in 2012. D) From 2002 to 2012, the cost of the market basket rose by 58 percent E) All prices have risen by the same amount. 24) The Consumer Price Index measures inflation by using A) all goods and services that are produced using a current-year basket. B) all goods and services that are produced using a base-year basket. C) only consumption goods and services purchased using a base-year basket. D) only consumption goods and services purchased using a current-year basket. E) A and D
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