Multiple Choice
If the CPI was 100 in 2000 and 120 in 2010 and the price of a gallon of milk was $4.00 in 2000 and $4.80 in 2010, then in relative terms the real of price milk between 2000 and 2010:
A) increased by 20%.
B) decreased by 20%.
C) remained the same.
D) cannot be determined without knowing the base year.
Correct Answer:
Verified
Correct Answer:
Verified
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