Suppose a basket of goods and services has been selected to calculate the CPI. In 2002, the basket's cost was $80; in 2008, the basket's cost was $92; and in 2010, the basket's cost was $108. The base year must be

Question

Quizplus · Accepted Answer

The base year is the year against which other years are compared, and it is not necessarily the first year in the data set. Without additional information specifying which year is the base year, it cannot be determined from the given data.

Suppose a Basket of Goods and Services Has Been Selected