Economics: Canada in the Global Environment, Ninth Edition

Chapter 21: Monitoring Jobs and Inflation

Answer: B

Diff: 2 Type: MC

Topic: The Price Level, Inflation, and Deflation

Use the table below to answer the following questions.

Table 21.3.1

Suppose a simple economy produces three goods only.

The price and output data for some selected years are shown below.

Price

(dollars)

Price

(dollars)

Quantity

(number)

Quantity

(number)

2002 2014 2002 2014

Pop

Crackers

Cucumbers

0.75

1.25

2.00

1.10

2.10

3.00

100

300

200

120

280

190

10) Refer to Table 21.3.1. The reference base period is 2002. The CPI in 2014 is

A) 1,340.

B) 158.

C) 100.

D) 96.

E) 63.

Answer: B

Diff: 3 Type: MC

Topic: The Price Level, Inflation, and Deflatio