If the consumer price index was 93 in Year 1, 97 in Year 2, and 100 in Year 3, then the base year must be
A)Year 2.
B)Year 3.
C)Year 1.
D)the base year cannot be determined from the given information.

Question

Quizplus · Accepted Answer

The base year is the year against which all other years are compared in terms of price changes, and it is typically set to an index value of 100. Since Year 3 has an index value of 100, it is the base year.

If the Consumer Price Index Was 93 in Year 1