The U.S. Consumer Price Index is computed by the:

Department of Labor.
Department of Commerce.
Treasury Department.
Federal Reserve.

Market Basket
Prices in year 1
Prices in year 2
10 lbs of potatoes
$1.10 per lb.
$.80 per lb.
7 lbs of corn
$.50 per lb.
$1.00 per lb.
2 lbs of beans
$.75 per lb.
$1.00 per lb.

From year 1 to year 2, the price index based on this market basket would:

increase by less than 5%.
increase by more than 5%.
decrease by less than 5%.
decrease by more than 5%.
remain unchanged.

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