ECON202 - Q2 - 3. If the Consumer Price Index was 102.2 in...

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1. If we read that the CPI had value of 120 in 1998, we would know that a. the typical market basket in 1998 was 20 percent more expensive than in the previous year b. the typical market basket in 1998 was 120 percent more expensive than in the base year c. the typical market basket in the base year was 120 percent more expensive than in 1998 d. the typical market basket in 1998 was 20 percent more expensive than in the base year e. the cost of a loaf of bread is higher now than it has been during the past ten years 2. The Consumer Price Index (CPI) a. measures the prices of all goods produced in the economy b. includes prices of raw materials c. is found by averaging the prices of all goods consumed in the economy d. includes only the prices of domestically produced consumer goods e. includes the prices of some used consumer goods
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Unformatted text preview: 3. If the Consumer Price Index was 102.2 in 2002 and 104.9 in 2003, we can conclude that a. the prices of all consumer goods were higher in 2003 than in 2002 b. the prices of all consumer goods were lower in 2003 than in 2002 c. the price level fell from 2002 to 2003 d. the price level rose from 2002 to 2003 e. the base year was 2001 4. Assume that the professors at a local college have gone without a pay increase for 4 years during a tough time. Suppose that things start to look up and the President of the college wants to make up for lost time. If the CPI in 2002 was 160 and 200 in 2006, how much will salaries have to increase to bring the faculty back up to their real income from 2002. ? a. 175% b. 150% c. 25% d. 16% e. 14% 5. What was the US unemployment rate in March? a. 4.7% b. 4.9% c. 5.1% d. 5.3% e. 5.2%...
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ECON202 - Q2 - 3. If the Consumer Price Index was 102.2 in...

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