QUESTION IMAGE
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
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.
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Deflation is happening.