Table 2.1
-Table 2.1 shows the prices and quantities purchased of four different goods by the typical household in
1977 and 1997. Using 1977 as the base year, the value of the consumer price index in 1977 was:
A) 200.
B) 175.
C) 100.
D) between 150 and 200.

Question

Table 2.1
-Table 2.1 shows the prices and quantities purchased of four different goods by the typical household in
1977 and 1997. Using 1977 as the base year, the value of the consumer price index in 1977 was:
A) 200. 
B) 175. 
C) 100. 
D) between 150 and 200.

Quizplus · Accepted Answer

The consumer price index (CPI) in the base year is always 100, as it serves as the benchmark against which future inflation or deflation is measured.

Table 2.1 -Table 2.1 Shows the Prices and Quantities Purchased of Four