A CPI that equals 1.34 in 2008 (when 2000 is the base year) means that:
A)prices in 2008 are 34 percent higher than in 2007.
B)the CPI equals $1.34 in 2008.
C)the inflation rate in 2008 is 134 percent.
D)the average level of prices is 34 percent higher in 2008 than in the base year.

Question

Quizplus · Accepted Answer

The CPI of 1.34 indicates that the average level of prices in 2008 is 34% higher than in the base year (2000).

A CPI That Equals 1