Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.

-Refer to Table 21.3.1.The reference base period is 2012.The CPI in 2012 is
A)100.
B)157.
C)129.
D)64.
E)153.

Question

Use the table below to answer the following questions.
Table 21.3.1
Suppose a simple economy produces three goods only.
The price and output data for some selected years are shown below.
 
-Refer to Table 21.3.1.The reference base period is 2012.The CPI in 2012 is
A)100. 
B)157. 
C)129. 
D)64. 
E)153.

Quizplus · Accepted Answer

The CPI in the base year always equals 100 by definition. Therefore, the CPI in 2012 (the base year) is 100.

Use the Table Below to Answer the Following Questions