ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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consists of items a typical 18-year old might buy for himself or herself.
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uses a representative market basket to calculate current price levels in an economy.
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is equal to 200 in whichever year is considered the base year.
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only increases during times of economic expansion.
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Detailed explanation-1: -The Consumer Price Index expresses the change in the current prices of the market basket of goods in a period compared to a base period. The CPI is usually computed monthly or quarterly. It is based on a representative expenditure pattern of urban residents and includes people of all ages.
Detailed explanation-2: -The market basket of goods and services that make up the Consumer Price Index (CPI) is divided into seven major groups, such as food and beverages or housing. The pattern of consumer expenditures at this level changes more slowly than the components within a group.
Detailed explanation-3: -Gather prices for common products or services in the past. Collect prices for current products or services. Add the product prices together. Divide the current product price total by the past price total. Multiply the total by 100. Convert this number into a percentage. 13-Jan-2021