Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 254.What does this "254" mean?
A) What cost $100 in 1983 on average cost 254 times as much in 2019.
B) What cost $100 in 1983 on average cost $254 more in 2019.
C) What cost $100 in 1983 on average cost 100/254 (or 0.39)times as much in 2019.
D) What cost $100 in 1983 on average cost $154 more in 2019.

Question

Quizplus · Accepted Answer

The CPI of 254 in 2019 means that prices have increased by 154% since 1983. Therefore, what cost $100 in 1983 would cost $254 in 2019, which is $154 more.

Suppose That 1983 Is the Base Year for the Consumer