[ 465 ] Economics GED ® TEST SOCIAL STUDIES FLASH REVIEW _____________ • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Use the chart to answer the following two questions. Consumer Price Index (CPI)—All Urban Consumers 1982–1984 = 100 Year Annual CPI Annual Inflation Rate % 1920 20.0 15.6 1930 17.5 –2.3 1940 14.0 0.7 1950 24.1 1.3 1960 29.6 1.7 1970 38.8 5.7 1980 82.4 13.5 1990 130.7 5.4 2000 172.2 3.4 The Consumer Price Index (CPI) measures changes in the cost of living by comparing the prices in common goods and services like food, clothing, rent, fuel, and others. This chart uses the years 1982–1984 as a base period (1982–1984 = 100). An item that costs $100 in the base period would cost the amount listed in the CPI column for that year. Source: U.S. Department of Labor, Bureau of Labor Statistics. The inflation rate peaked in 1920 following World War I. What other time period was marked by a high inflation rate? a. the years immediately following the stock market crash of 1929 b. the year following the oil crisis of 1979 c. the recession of 1990 d. the years preceding the U.S. entry into World War II Based on the information given, which decade experienced a decrease in the cost of living? a. 1930–1940 b. 1940–1950 c. 1950–1960 d. 1970–1980