Suppose the market basket of goods and services cost $3,500 in 1996 but today costs $4,250. Using 1996 as the base year, the consumer price index for today is:

Name: Suppose the market basket of goods and services cost $3,500 in 1996 but today costs $4,250. Using 1996 as the base year, the consumer price index for today is:
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Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated as (Current Year Cost/Base Year Cost) x 100. So, (4250/3500) x 100 = 121.4.

Suppose the Market Basket of Goods and Services Cost $3,500