A consumer price index of 160 in 1996 with a base year of 1982minus−1984 would mean that the cost of the market basket A. Equaled $160 in 1996. B. Rose 60% from the cost of the market basket in the base year. C. Equaled $160 in 1983. D. Rose 160% from the cost of the market basket in the base year.
Business · High School · Tue Nov 03 2020
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A consumer price index (CPI) of 160 in 1996 with a base year of 1982-1984 indicates:
B. Rose 60% from the cost of the market basket in the base year.
The CPI serves as a measure of inflation or the change in the price level of a basket of goods and services over time. A CPI of 160 in 1996 compared to the base year implies a 60% increase in the overall price level from the base year to 1996.