You read in the newspaper that the consumer price index for 2019 is 120. You conclude that a typical market basket in 2019 would have cost _____ more than the same market basket purchased in _____.
A)20%; 2010.
B)20%; 2010
C)120%; 2010.
D)120%; 2010
E)20%; the base year
F)20%; the base year.
G)120%; the base year.
H)120%; the base year

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the average change in prices over time. A CPI of 120 indicates that prices have increased by 20% since the base year, as the base year CPI is typically set at 100.

You Read in the Newspaper That the Consumer Price Index