Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2012 the CPI was 226.What does this "226" mean?
A) What cost $100 in 1983 on average cost 226 times as much in 2012.
B) What cost $100 in 1983 on average cost $226 more in 2012.
C) What cost $100 in 1983 on average cost 100/226 (or 0.44) times as much in 2012 (that is, it will cost $22 in 2012).
D) What cost $100 in 1983 on average cost $126 more in 2012.

Question

Quizplus · Accepted Answer

The CPI of 226 in 2012 means that prices have increased by 126% since 1983, so what cost $100 in 1983 would cost $226 in 2012, which is $126 more.

Suppose That 1983 Is the Base Year for the Consumer