Suppose the Consumer Price Index for the year 2007 is 143.6. What does that number mean?
A) On average, goods cost $243.60 each in 2007.
B) Prices rose 143.6 percent over the reference base period, on average.
C) On average, goods cost $143.60 each in 2007.
D) Prices rose 43.6 percent over the reference base period, on average.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) of 143.6 indicates that prices have risen by 43.6% compared to the reference base period, which is typically set at 100.

Suppose the Consumer Price Index for the Year 2007 Is