Macroeconomic

Consumer price index falls 0.4% in April The CPI in April 2013 was 233 and 0.4% lower than the March. In April, food prices rose 0.2% while energy prices fell 4.3%. Source: USA Today, June 15, 2011 Distinguish between the price level and the inflation rate and explain why the CPI fell by only 0.4 percent when energy fell by 4.3 percent. . . . . . The is the price level and the is the inflation rate." O A. CPI; percentage change in the CPI O B. value of the CPI this year minus the value of the CPI in the reference base period; percentage change in the CPI since the reference base period O C. CPI; change in the CPI O D. percentage change in the CPI; CPI O E. change in the CPI; percentage change in the CPI Because the CPI fell by only 0.4 percent when energy prices fell 4.3 percent, then O A. the composition of the CPI basket must have changed O B. other prices must have risen by more than 0.4 percent O C. other prices must have fallen by more than 0.4 percent O D. people spend more on food than on energy