Suppose total expenditures for a typical household in 2008 were $2,000 per month and that the cost of purchasing exactly the same items in 2012 was $3,200 per month.If 2008 is the base year,the consumer price index (CPI)for 2012 equals
A) 62.5.
B) 100.
C) 125.
D) 148.
E) 160.

Question

Quizplus · Accepted Answer

The CPI for 2012 is calculated as (Cost in 2012 / Cost in 2008) * 100 = ($3,200 / $2,000) * 100 = 160.

Suppose Total Expenditures for a Typical Household in 2008 Were