When 1983 is the CPI base year, the CPI value is 82.4 for 1980 and 172.2 for 2000. Suppose we want to convert this CPI series to have a base year of 2000 (that is, CPI₂₀₀₀ = 100). What is the value of the revised CPI for 1980? A) 172.2 B) 100 C) 47.9 D) 209.0

Question

Quizplus · Accepted Answer

To convert the CPI series to have a base year of 2000, we need to multiply all the CPI values by (CPI₂₀₀₀/CPI₉₈₃) = (100/172.2). Therefore, the revised CPI for 1980 would be: (82.4) x (100/172.2) = 47.9.

When 1983 Is the CPI Base Year, the CPI Value