Suppose the Consumer Price Index (CPI)increased by 5 Percent Over

Multiple Choice

Suppose the Consumer Price Index (CPI) increased by 5 percent over each of the last 5 years while the GDP price index increased by 12 percent annually.Which of the following reasons could explain this difference?

A) Police unions across the country agreed to substantial salary cuts.
B) Import good prices increased relative to domestic good prices.
C) The price of used automobiles increased substantially relative to the prices of other goods.
D) The price of fighter planes dropped due to increased competition in the aerospace industry.
E) The price of investment goods purchased by businesses increased substantially relative to the prices of all other goods.