Suppose that the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year. The CPI this year would be

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated by taking the current year's price of the basket of goods, dividing it by the base year's price of the same basket, and then multiplying by 100. So, for this question, it would be ($188.80 / $160) * 100 = 118.0.

Suppose That the Basket of Goods Purchased by the Typical