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If the Inflation Rate, as Measured by the CPI, Over

Question 24

Multiple Choice

If the inflation rate, as measured by the CPI, over the past year was 4%, a basket of goods and services that cost _____ a year ago would be equivalent to _______ at the current price level.


A) $20,000, $21,000
B) $10,000, $10,400
C) $20,000, $20,400
D) $10,000, $10,800

Correct Answer:

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