If the CPI is 112 in Year Z,then it costs _______ in Year Z to buy the same market basket that cost _______ in the base period.
A) $112;$100
B) $12;$100
C) $100;$112
D) $112;$12

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. A CPI of 112 means that it costs $112 in Year Z to buy the same market basket that cost $100 in the base period. The base period CPI is typically set to 100.

If the CPI Is 112 in Year Z,then It Costs