The formula for calculating the CPI is
A)(Expenditures in the current year/Expenditures in the base year)× 100.
B)(Expenditures in the current year × Expenditures in the base year)/100.
C)(Expenditures in the base year/Expenditures in the current year).
D)(Expenditures in the base year × 100)/(Expenditures in the current year).

Question

Quizplus · Accepted Answer

The formula for calculating the CPI (Consumer Price Index) is to divide the Expenditures in the current year by the Expenditures in the base year, then multiply the result by 100. This can be represented as (Expenditures in the current year/Expenditures in the base year)× 100. Option A is the only one that matches this formula.

The Formula for Calculating the CPI Is