If the CPI was 108.00 in 1942 and is 336.96 today,then $10 in 1942 purchased the same amount of goods and services as
A)$2.57 purchases today.
B)$28.89 purchases today.
C)$31.20 purchases today.
D)$38.89 purchases today.

Question

Quizplus · Accepted Answer

The CPI is a measure of the price level of goods and services purchased by consumers. It is calculated by taking the average price of a basket of goods and services in a given year and dividing it by the average price of the same basket of goods and services in a base year. The resulting number is multiplied by 100 to create the CPI index.In this case, the CPI was 108.00 in 1942 and is 336.96 today. This means that the price level of goods and services has increased by a factor of 336.96/108.00 = 3.1209 since 1942.Therefore, $10 in 1942 would purchase the same amount of goods and services as $10 x 3.1209 = $31.20 purchases today.

If the CPI Was 108