Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year.In 2012,the basket's cost was $80.00;in 2013,the basket's cost was $84;and in 2014,the basket's cost was $87.60.The value of the CPI was
A)100 in 2012.
B)105 in 2013.
C)109.5 in 2014.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The CPI in the base year (2012) is always 100. For 2013, CPI = ($84/$80) * 100 = 105. For 2014, CPI = ($87.60/$80) * 100 = 109.5. All statements are correct.

Suppose a Basket of Goods and Services Has Been Selected