You read in the newspaper that the consumer price index in 2011 was 120. You conclude that a typical market basket in 2011 would have cost _____ more than the same market basket purchased in _____.
A)20%; 2010
B)120%; 2010
C)20%; the base year
D)120%; the base year

Question

Quizplus · Accepted Answer

The consumer price index (CPI) of 120 indicates that prices have increased by 20% compared to the base year, which is typically set at 100.

You Read in the Newspaper That the Consumer Price Index