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if the consumer price index (cpi) goes down, what does that mean? infla…

Question

if the consumer price index (cpi) goes down, what does that mean?

inflation is happening

the stock market is rising

wages are increasing

deflation is happening

Explanation:

Brief Explanations

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. When CPI goes down, it indicates a general decline in prices, which is known as deflation. Inflation is when CPI rises. The stock market and wage increases are not directly and solely indicated by a decrease in CPI.

Answer:

Deflation is happening.