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

Question

Responses

that the economy is stagnant
that the economy is stagnant

that the economy is shrinking
that the economy is shrinking

that the economy is growing
that the economy is growing

that the economy is in recession

Answer 1

An increase in the Consumer Price Index (CPI) usually signals that the economy is growing.

While rising CPI can indicate inflation, which may occur in a growing economy, it does not necessarily mean the economy is stagnant, shrinking, or in recession. Instead, it often reflects increased consumer demand and economic activity.