Suppose that 1983 is the base year for the Consumer Price Index (CPI)and in 2008 the CPI was 220.What does this "220" mean?
A) What cost $100 in 1983 on average cost 2.20 times as much in 2008.
B) What cost $100 in 1983 on average cost $220 more in 2008.
C) What cost $100 in 1983 on average cost 0.22 times as much in 2008 (that is, it cost $22 in 2008).
D) What cost $100 in 1983 on average cost $22 more in 2008.

Question

Quizplus · Accepted Answer

The CPI measures the change in the price level of goods and services over time. A value of 220 for the CPI in 2008 means that, on average, the price of goods and services has increased by a factor of 2.20 since 1983. Therefore, what cost $100 in 1983 on average cost 2.20 times as much in 2008.

Suppose That 1983 Is the Base Year for the Consumer