Assume that between 2017 and 2018, the CPI of a country rose from 182 to 185. If household incomes rose by 3% during that period of time, then which of the following is true?

Question

Assume that between 2017 and 2018, the CPI of a country rose from 182 to 185. If household incomes rose by 3% during that period of time, then which of the following is  true ?

Accepted Answer

The purchasing power of household income rose between 2017 and 2018.

Answer

The CPI cannot be used to determine how the purchasing power of household income changes over time.

Answer

The purchasing power of household income remained constant between 2017 and 2018.

Answer

The purchasing power of household income fell between 2017 and 2018.

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Assume that between 2017 and 2018, the CPI of a country rose from 182 to 185. I...

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