Which of the following is the correct formula for calculating the consumer price index?
A)[(CPI in Year 1 − CPI in Year 2)/CPI in Year 2] × 100
B)[(price of basket of goods and services in current year/price of basket in base year)]× 100
C)[(price of basket of goods and services in current year − price of basket in base year)/price of basket in base year] × 100
D)[(price of basket of goods and services in base year/price of basket in current year)] × 100

Question

Quizplus · Accepted Answer

The correct formula for calculating the Consumer Price Index (CPI) is [(price of basket of goods and services in current year/price of basket in base year)]× 100, which compares the cost of a standard group of goods and services in a specific year to the cost of the same group of goods and services in a base year, expressed as a percentage.

Which of the Following Is the Correct Formula for Calculating