Steve Walker, CFA, is attending an economics lecture, during which the lecturer makes the following two statements about consumer price inflation: Statement 1: High-definition televisions are considerably more expensive than traditional models. This means consumers are spending more money per television unit, which represents a form of inflation. Statement 2: Employment contracts with cost-of-living increases based on the Consumer Price Index result in optimal economic decisions because they adjust wage costs automatically for the rate of inflation. Should Walker agree or disagree with these statements Statement 1 Statement 2 () ①A. Agree Agree ②B. Agree Disagree ③C. Disagree Disagree
A.①
B.②
C.③