For an imaginary economy,the consumer price index was 115.00 in 2004,126.50 in 2005,and 136.62 in 2006.Which of the following statements is correct?
A)For this economy,the base year must be 2004.
B)If the basket of goods that is used to calculate the CPI cost $75.00 in the base year,then that basket of goods cost $115.00 in 2004.
C)This economy's rate of inflation for 2006 is 10.12 percent.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The Answer of For an imaginary economy,the consumer price index was 115.00 in 2004,126.50 in 2005,and 136.62 in 2006.Which of the following statements is correct?
A)For this economy,the base year must be 2004.
B)If the basket of goods that is used to calculate the CPI cost $75.00 in the base year,then that basket of goods cost $115.00 in 2004.
C)This economy's rate of inflation for 2006 is 10.12 percent.
D)None of the above is correct.

For an Imaginary Economy,the Consumer Price Index Was 115