) To ensure government does not over charge citizens on the goods they purchase

To monitor changes in the cost of living

A situation in which the economy’s overall price level is rising

The percentage included on goods purchased

False

True

ost incomes and production and lost human capital

more unhappy people

Fixing the basket, finding the prices, computing the baskets costs, choosing a base year and computing the index and then computing the inflation rate

Fixing the basket, finding the basket, differentiating the goods from services, choosing a base year and computing the index and the computing the inflation rate

Help consumers decide which goods to substitute

Measure changes in the cost of living

It averages the different quality changes from different years to give one amount that measures the total quality change

Works out the average characteristics of the average good and adjusts the price when one of these average characteristics increase

The automatic correction of a money amount for the effects of inflation by law or contract

The adjusting of prices using the inflation rate percentage

Have full-time and part-time employment or be self-employed

Be full-time employed