Suppose that the consumer price index equaled 30 in 1960 and 170 in 2013. If you had $100 to buy some goods in 2013, you would have needed ______ in 1960 to buy the same amount of goods.
A) $12.88
B) $15.34
C) $17.64
D) $18.98

Question

Quizplus · Accepted Answer

To find the equivalent amount in 1960, use the formula: (CPI in 1960 / CPI in 2013) * 2013 amount. So, (30 / 170) * 100 = $17.64.

Suppose That the Consumer Price Index Equaled 30 in 1960