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Suppose the Base Year of the CPI Is 2017, and the CPI

Question 30

Multiple Choice

Suppose the base year of the CPI is 2017, and the CPI calculated for 2019 was 102. What is the correct interpretation of this number?


A) The cost of living for a typical consumer decreased by 2 percent since 2017.
B) The cost of living for a typical consumer increased by 1.9 percent since 2017.
C) The cost of living for a typical consumer is 2 percent higher than it was in 2017.
D) The cost of living is unchanged; the CPI does not measure changes in the price level.

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