If relative to the base period of 1982 through 1984, the consumer price index for 2015 was 238, then the purchasing power of a dollar in 2015, measured in 1982-1984 dollars, was _____
A) $2.38.
B) $0.24.
C) $0.42.
D) $4.20.
E) $1.

Question

Quizplus · Accepted Answer

To calculate the purchasing power of a dollar in 2015 measured in 1982-1984 dollars, we need to divide 1 by the consumer price index for 2015 and then multiply by 100. So, (1/238) x 100 = 0.4201 or approximately $0.42. Therefore, the correct answer is C.

If Relative to the Base Period of 1982 Through 1984