Measuring Inflation

The CPI for the current year is 128 and for the previous year, 110. What is the inflation rate?

• a. 14.64%

• b. 15.46%

• c. 16.4%

• d. 17.06%

PPP stands for _____.

• a. Purchasing power of peso

• b. Push-pull of peso

• c. Probable purchase of peso

• d. Possible power of peso

The Philippine Statistics Agency or PSA sets the changing of base year for Consumer Price Index or CPI every _____ years.

• a. Five

• b. Six

• c. Seven

• d.

The rising of prices that weaken purchasing power.

• a. devaluation

• b. CPI

• c. PPP

• d. None of the above

This statement best describes CPI.

• a. The continuing increase in the general prices of goods and services.

• b. The average percentage in the change of retail prices of goods and services usually purchased by consumers particularly urban families.

• c. The ability of the peso to buy goods and services.

• d. All of the above.

The law that was signed at the height of the pandemic in 2020 that reduces corporate income tax to as much as 30%.

• a. RA 31154

• b. RA 51143

• c. RA 11534

• d. RA 34115

The minimum wage in Metro Manila.

• a. P 645

• b. P 570

• c. P 345

• d. P 470

The relationship between CPI and PPP.

• a. Higher CPI, lower PPP

• b. CPI and PPP are equal

• c. Lower CPI, higher PPP

• d. CPI and PPP are not connected

If the base year is 2012 and the CPI in 2022 is 129, which statement is true.

• a. The Marcos administration will have a difficult time solving the onion shortage given a CPI of 129.

• b. The real value of peso compared to the base year is 0.84

• c. The Aquino administration did not have progressive tax laws.

• d. The real value of peso compared to the base year is 0.78.

The (yearly) inflation rate that is considered acceptable.

• a. 2.5%

• b. 2%

• c. 3%

• d. 3.5%