Suppose that 1982 is the base year for the Consumer Price Index (CPI)and in 2019 the CPI is 270.What does this "270" mean?
A) What cost $100 in 1982 on average cost 270 times as much in 2019.
B) What cost $100 in 1982 on average cost $270 in 2019.
C) What cost $100 in 1982 on average cost 0.27 times as much in 2019.
D) What cost $100 in 1982 on average cost $27 more in 2019

Question

Quizplus · Accepted Answer

The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of goods and services. If the CPI in 2019 is 270 and the base year is 1982, it means that the cost of the same market basket of goods and services that cost $100 in 1982 now costs $270 in 2019. Therefore, option B is the correct answer.

Suppose That 1982 Is the Base Year for the Consumer