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

Question

Quizplus · Accepted Answer

To calculate the CPI, we use the formula: (Cost of basket in current year / Cost of basket in base year) x 100.

Plugging in the numbers given in the question, we get: (11,200 / 10,000) x 100 = 112.0

Therefore, the CPI for today is 112.0.

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