Suppose total expenditures for a typical household in 2009 were $4,500 per month and that the cost of purchasing exactly the same items in 2012 was $6,975 per month.If 2009 is the base year,the consumer price index (CPI)for 2012 equals
A) 65.
B) 100.
C) 121.
D) 132.
E) 155.

Question

Quizplus · Accepted Answer

The CPI is calculated as (Cost in current year / Cost in base year) x 100. So, (6975 / 4500) x 100 = 155.

Suppose Total Expenditures for a Typical Household in 2009 Were