The price of a given basket of goods in Year 1 was $1,300.The price of the same basket of goods in Year 2 was $1,560.Taking Year 1 as the base year,the Consumer Price Index for Year 2 is ________.
A) 101
B) 120
C) 156
D) 100

Question

Quizplus · Accepted Answer

To calculate the Consumer Price Index (CPI) for Year 2 with Year 1 as the base year, we use the formula: 
CPI = (Price of basket of goods in Year 2 / Price of basket of goods in Year 1) x 100

Using the given values, we can calculate: 
CPI = (1,560 / 1,300) x 100 
CPI = 120

Therefore, the answer is (B) 120.

The Price of a Given Basket of Goods in Year