Table 24-5
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys.
-Refer to Table 24-5. If the base year is 2006, then the CPI
A)increased from 2004 to 2005 and increased from 2005 to 2006.
B)increased from 2004 to 2005 and decreased from 2005 to 2006.
C)decreased from 2004 to 2005 and increased from 2005 to 2006.
D)decreased from 2004 to 2005 and decreased from 2005 to 2006.

Question

Table 24-5
The table below pertains to Wrexington, an economy in which the typical consumer's basket consists of 20 pounds of meat and 10 toys. 
-Refer to Table 24-5. If the base year is 2006, then the CPI
A)increased from 2004 to 2005 and increased from 2005 to 2006. 
B)increased from 2004 to 2005 and decreased from 2005 to 2006. 
C)decreased from 2004 to 2005 and increased from 2005 to 2006. 
D)decreased from 2004 to 2005 and decreased from 2005 to 2006.

Quizplus · Accepted Answer

The CPI increased from 2004 to 2005 and from 2005 to 2006, indicating a rise in the price level each year.

Table 24-5 The Table Below Pertains to Wrexington, an Economy in Which