Suppose the consumer price index in 2015 is 100 and a shirt costs $50. In 2017, the consumer price index is 110. Which of the following is true?

(a) The shirt is cheaper in real terms in 2015 if it costs $45
(b) The shirt is more expensive in real terms in 2017 if it costs $60 (c) The shirt is cheaper in real terms in 2017 if it costed $55
(d) The shirt is the same price in real terms in 2017 if it costs $50

Answer rating: 100% (QA)

The correct answer isc The shirt is cheaper in real terms in 2017 if it costs 55 Heres why Consumer ... View the full answer