Asked by joseph sciotto on Jul 16, 2024
Verified
What does it mean when the CPI is higher this year than last?
A) The rate of inflation has increased.
B) There has been inflation since last year.
C) Real prices have increased.
D) Real prices have decreased.
Real Prices
Prices that have been adjusted for inflation, reflecting the true purchasing power of money over time.
CPI
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
- Acquire knowledge about the core principles and impact of inflation on economic activities.
Verified Answer
KM
Karla MedinaJul 17, 2024
Final Answer :
B
Explanation :
When the Consumer Price Index (CPI) is higher this year compared to last, it indicates that there has been inflation since last year, meaning the general level of prices for goods and services has risen.
Learning Objectives
- Acquire knowledge about the core principles and impact of inflation on economic activities.