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Using CPI to Adjust for Inflation
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Using CPI to Adjust for Inflation
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11. Gross Domestic Product (GDP) and Consumer Price Index (CPI) / Using CPI to Adjust for Inflation / Problem 1
Problem 1
Discuss the broader economic implications of a consistent rise in CPI over several decades.
A
It indicates a long-term trend of inflation, which can erode purchasing power and affect savings.
B
It implies a stable economy with no significant changes in purchasing power.
C
It shows a deflationary trend, leading to increased purchasing power.
D
It suggests a decrease in the cost of living, benefiting consumers.
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