Table 8-2 Base Year (2000) 2006 Product Quantity Price Price Milk 50 $1.20 $1.30 Bread 100 $1.00 $1.50 18. Refer to Table 8-2 and the calculation you did in Q17. Which statement below is incorrect regarding a potential flaw in that process? O a) a. the traditional cpi is used to calculate an inflation rate Ob) b. the does not consider that new technologies usually experience falling prices Oc) c. the calculation did not consider substitution effects resulting from price changes 21 O d) d. the calculation did not consider that when prices rise, people cut back 24 consumption on those goods, all else held constant O e) e. the calculation should have included used goods and services in the basket of goods5-Year Treasury Inflation-Indexed Note, Due 4/15/2010 (DTPSA10) Source: Haver Analytics, Dow Jones A Company (Percent) -1 2004 2005 2906 2007 2008 2009 2008 Federal Reserve Bank of St Louis: research stipulated.org 19. Refer to the diagram above, which has the real interest rate on the vertical axis. This was used to describe O a) a. a situation where it R in the expression r = R - IT O c) c. a negative nominal interest rate(Percent) -1 2004 2005 2006 2007 2008 2009 2008 Federal Reserve Bank of St. Louis: research. atlouisfed. org 19. Refer to the diagram above, which has the real interest rate on the vertical axis. This was used to describe O a) a. a situation where it R in the expression r = R - n O c) c. a negative nominal interest rate O'd) d. when the economy is in a Great Recession