Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been selected as the base year.In 2012,the basket's cost was $50;in 2014,the basket's cost was $51;and in 2016,the basket's cost was $52.The value of the CPI in 2014 was
A)98.0.
B)102.0.
C)104.0.
D)151.0.

Question

Quizplus · Accepted Answer

The CPI is calculated as (Cost of basket in current year / Cost of basket in base year) x 100. For 2014, it is ($51 / $50) x 100 = 102.0.

Suppose a Basket of Goods and Services Has Been Selected