Suppose your income rises from Rs19,000 to Rs31,000 while the CPI rises from 122 to 169 Your standard of living has likely ?
Correct answer: C. risen
- A. fallen
- B. You can't tell without knowing the base year
- C. risen
- D. stayed the same
Explanation
Income increased by about 63%, while the CPI increased by about 39%, so purchasing power and real income rose. The base year is unnecessary because only the change in the CPI matters.
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