A country reports the total expenditures on the fixed CPI basket for the past three years.The cost of the CPI basket in 2008 was $23,000, the cost of the CPI basket for the base period, 2009, was $23,805, and the cost of the CPI basket in 2010 was $24,500.The CPI for 2008 is

Question

Quizplus · Accepted Answer

The CPI for 2008 is calculated as (Cost in 2008 / Cost in base year 2009) * 100 = ($23,000 / $23,805) * 100 = 96.6.

A Country Reports the Total Expenditures on the Fixed CPI