Suppose that the total expenditures for a typical household in 2010equaled $2,500 per month, while the cost of purchasing exactly the same items in 2015 was $3,000.If 2010 is the base year, the CPI for 2010 equals:
A)0.83
B)1.00
C)1.20
D)1.25

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) for the base year is always set to 1.00 (or 100 if expressed as an index).

Suppose That the Total Expenditures for a Typical Household in 2010equaled