A country reports the total expenditures on the fixed CPI basket for the past three years.The cost of the CPI basket in 2010 was $23,000,the cost of the CPI basket for the reference base period,2011,was $23,805,and the cost of the CPI basket in 2012 was $24,500.The CPI for 2010 is

Question

Quizplus · Accepted Answer

The CPI for a given year is calculated as (Cost of CPI basket in the given year / Cost of CPI basket in the base year) * 100. For 2010, it is ($23,000 / $23,805) * 100 = 96.6.

A Country Reports the Total Expenditures on the Fixed CPI