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Suppose the CPI at the end of 2004 was 150 and the CPI at the end of 2005 was 165. Calculate the inflation rate for 2005.

A. 15%
B. 10%
C. 65%
D. 20%

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Suppose the cost of the basket in 2005 was $4,200 and the cost of the basket in the base year was $4,000.

A. The CPI for 2005 is 105
B. The inflation rate for 2005 was 5%
C. The inflation rate for 2004 was 5%
D. We cannot discern anything from the data provided

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Suppose the cost of the basket at the end of 2002 was $5,500, and at the end of 2003 it was $5,775. If the cost of the basket in the base year was $1,000, find the inflation rate for 2003.

A. 27.5%
B. 25.0%
C. 10.0%
D. 5.0%

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All of the following cause the CPI to measure more inflation than there really is, EXCEPT:

A. substitution bias
B. introduction of new goods
C. unmeasured quality change
D. the steady increase in the number of consumers

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Suppose the price of fish increases, so households now buy less fish and more chicken. This will cause the:

A. CPI to measure more inflation than there really is
B. CPI to measure less inflation than there really is.
C. PPI to measure less inflation than there really is
D. GDP deflator to measure less inflation than there really is

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Suppose the CPI at the end of 2004 was 150 and the CPI at the end of 2005 was 165. Calculate the inflation rate for 2005.

A. 15% B. 10% C. 65% D. 20%

Suppose the cost of the basket in 2005 was $4,200 and the cost of the basket in the base year was $4,000.

Suppose the cost of the basket at the end of 2002 was $5,500, and at the end of 2003 it was $5,775. If the cost of the basket in the base year was $1,000, find the inflation rate for 2003.

All of the following cause the CPI to measure more inflation than there really is, EXCEPT:

Suppose the price of fish increases, so households now buy less fish and more chicken. This will cause the:

A. 15%
B. 10%
C. 65%
D. 20%