Which of the following statements is correct?
A)The CPI is the ratio of the cost of the market basket in the base year to the cost of the market basket in one year.
B)The CPI is the ratio of the cost of the market basket in the base year to the cost of the market basket in one year multiplied by 100.
C)The CPI is the ratio of the cost of the market basket in one year to the cost of the market basket in the base year.
D)The CPI is the ratio of the cost of the market basket in one year to the cost of the market basket in the base year multiplied by 100.

Question

Quizplus · Accepted Answer

The CPI (Consumer Price Index) is the ratio of the cost of the market basket in one year to the cost of the market basket in the base year multiplied by 100. This is used to measure the change in the price of goods and services over time. Option D accurately describes this calculation method.

Which of the Following Statements Is Correct