Suppose a market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What is the consumer price index for the current period?

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated by dividing the current cost of the market basket by the cost in the base period and then multiplying by 100. So, ($11,200 / $10,000) * 100 = 112.0.

Suppose a Market Basket of Goods Costs $10,000 in 2009