Suppose the CPI was 95 in 1955, and suppose currently the CPI is 475. According to the CPI, $100 today purchases the same amount of goods and services as
A) $20.00 purchased in 1955.
B) $33.33 purchased in 1955.
C) $47.50 purchased in 1955.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

To find the equivalent amount in 1955, use the formula: (CPI in 1955 / CPI today) * today's amount. So, (95 / 475) * $100 = $20.00.

Suppose the CPI Was 95 in 1955, and Suppose Currently