An increase in the CPI usually signals which of the following?(1 point)

Question

Responses

that the economy is shrinking
that the economy is shrinking

that the economy is in recession
that the economy is in recession

that the economy is stagnant
that the economy is stagnant

that the economy is growing

Answer 1

An increase in the Consumer Price Index (CPI) usually signals that the economy is growing. While an increase in CPI can indicate inflation, which means prices are rising, it is often associated with an expanding economy where demand outpaces supply, leading to higher prices. Therefore, the correct response is:

that the economy is growing.