If the Consumer Price Index for a certain year is 120, this means that the average price of consumer items in that year was:
A) 20% higher than the average price in the base period 1982-84
B) About $120 per basket of consumer goods and services
C) 120% higher than the average price in the base period 1982-84
D) 20% higher than the average price of the preceding year

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) of 120 indicates that the average price level is 20% higher than the base period, which is typically set at 100.

If the Consumer Price Index for a Certain Year Is