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Question 23 (1 point) The percent change in the overall level of prices in the economy is called: 9 12 the growth rate of GDP. GDP the inflation rate. 15 the interest rate. Question 24 (1 point) The consumer price index (CPI) is: 2 the measure of consumer prices in both rural and urban areas; it is calculated by adding up all prices. a measure of food, clothing, and housing prices. a measure of all prices in the economy, a measure of the price level based on the consumption patterns of a typical 15 consumer. | Question 25 (1 point) Typically the largest percentage category in the consumer price index (CPI) is: 2 housing. food and beverages. transportation medical care. 5 9 Question 26 (1 point) If the price of industrial plastic injection molding machines rose by 20% and the price of oranges fell by 20%, then the consumer price index (CPI) would: 12 fall because people buy more oranges than plastic injection molding machines. O remain unchanged. fall by the weighted value of oranges in the CPI. 15 rise because plastic injection molding machines weigh more physically per unit. 18 Question 27 (1 point) If cheeseburgers become more expensive and consumers switch their purchases away from cheeseburgers but the consumer price index (CPI) still assumes they buy the same amount, then: 12 15 deflation will occur because consumers no longer buy cheeseburgers. consumers will experience a price confusion problem. the CPI will reflect upward bias. the CPI will reflect downward bias. 18