Multiple Choice
According to the consumer price index (CPI) ,in a particular year,the price of gasoline rises in the United States by 22 percent; simultaneously,the price of all food items falls by 8 percent.Which statement is correct?
A) If gasoline prices rise in more of the 38 geographical locations than those in which it stays the same or falls,the food price changes are irrelevant.
B) This means that the price of gasoline must have increased in more of the 38 geographical locations where the CPI is measured and food prices must have fallen in more of those 38 locations.
C) Based solely on the information given,we cannot conclude what happened to the CPI.
D) This means that the price of gasoline and food rose in every geographic location where the CPI is measured.
E) This means that the price of gasoline and food rose in every place where gasoline and food were sold in the United States during that year.
Correct Answer:

Verified
Correct Answer:
Verified
Q117: What is the difference between the consumer
Q118: Inflation is occurring in a nation; the
Q119: Define "inflation." Be specific.Be sure to address
Q120: Inflation necessarily occurs when<br>A) the price of
Q121: Refer to the following figure when answering
Q123: Let's say a bottle of Dr.Wells (an
Q124: What is one reason why a government
Q125: Explain how inflation redistributes wealth,and under what
Q126: Explain why it makes sense that the
Q127: Suppose that the consumer price index of