If the CPI for a country is 100 in the year 2006, and 120 in the year 2007, then the base year is
A) 2006
B) 2007
C) 2008
D) cannot tell from the information given

Question

Quizplus · Accepted Answer

The base year for the Consumer Price Index (CPI) is the year against which future or past inflation rates are measured, and it is typically assigned a value of 100. Since the CPI is 100 in 2006, that year is the base year.

If the CPI for a Country Is 100 in the Year