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In Constructing the Consumer Price Index for the Current Year

Question 191

Multiple Choice

In constructing the consumer price index for the current year

A) the average price of a "bundle" of goods purchased in a base year is divided by the prices of the same bundle that existed during the current year.
B) the average price of a "bundle" of goods purchased during a base year is divided into the price that existed in the current year.
C) the total cost of a "bundle" of goods purchased in a base year is divided by the cost of the same bundle that existed during the current year.
D) the total cost of a "bundle" of goods purchased in a base year is divided into the cost of the same bundle that existed during the current year.

Correct Answer: