Question : 66) A country reports the total expenditures the fixed CPI : 1224045

 

 

66) A country reports the total expenditures on the fixed CPI basket for the past three years. The cost of the CPI basket in 2010 was $23,000, the cost of the CPI basket for the reference base period, 2011, was $23,805, and the cost of the CPI basket in 2012 was $24,500. The CPI for 2010 is

A) 96.6.

B) 100.0.

C) 103.5.

D) 106.5.

E) 23.0.

 

 

67) A country reports the total expenditures on the fixed CPI basket for the past three years. The cost of the CPI basket in 2010 was $23,000, the cost of the CPI basket for the reference base period, 2011, was $23,805, and the cost of the CPI basket in 2012 was $24,500. The CPI for 2012 is

A) 93.9.

B) 97.2.

C) 102.9.

D) 106.5.

E) 245.0.

 

68) When the CPI rises ________, the inflation rate is ________.

A) steadily; zero

B) rapidly; high

C) slowly; high

D) rapidly; low

E) rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.

 

 

69) The inflation rate is the

A) percentage change in the composition of the CPI market basket from the base year to the next year.

B) percentage change in the CPI from one year to the next year.

C) difference between the current period CPI and the base period CPI.

D) difference between the base period CPI and the current period CPI.

E) difference in the price level from one year to the next multiplied by 100.

 

 

70) The inflation rate measures the

A) average price of the goods and services consumed by urban consumers.

B) percentage change in the CPI from one year to the next year.

C) cost of the CPI market basket at current period prices divided by the cost of the CPI market basket at base period prices.

D) percentage change in the quantity of goods and services consumed by urban consumers.

E) cost of the CPI market basket at base period prices divided by the cost of the CPI market basket at current period prices.

 

71) Which of the following formulas is used to calculate the inflation rate?

A) inflation rate = 100 ×

B) inflation rate = 100 ×

C) Inflation rate = 100 ×

D) Inflation rate = 100 ×

E) inflation rate = 100 ×

 

 

72) If the CPI is 231.4 in one year and is 241.2 in the next year, then the inflation rate equals

A) (241.2 – 231.4) × 100.

B) × 100.

C) × 100.

D) × 100.

E) × 100.

 

 

73) If the CPI decreases from one year to the next, then the inflation rate is

A) positive.

B) above 100.

C) below 100.

D) negative.

E) 0.

 

74) Suppose in year 1 the CPI is 90, in year 2 the CPI is 100, and in year 3 the CPI is 110. Then, inflation is

A) 100 percent in year 1.

B) 11 percent between years 1 and 2.

C) 11 percent between years 2 and 3.

D) 10 percent between years 2 and 3.

E) Both answers B and D are correct.

 

 

75) A country’s CPI was 84.5 last year and 100.0 this year. The inflation rate was

A) 84.5 percent.

B) 18.3 percent.

C) 15.5 percent.

D) 7.29 percent.

E) -18 percent.