Question

Question 16 O Mark this question The following shows the Consumer Price Index (CPI) for the years 2000-2005. All of the values use a reference year of 1983. CPI by Year 194.5 189.7 183.7 185 180 178 179.9 2000 2001 2002 2003 2004 2005 Year Which of the following is true about the CPI, based on the information? O $100 in 1983 would be equivalent to $172.40 in 2000. O $100 in 2001 would have been worth 189.70 in 1983. O $100 in 2000 would be equivalent to $183.70 in 2003. O $100 in 2005 would be equivalent to $194.50 in 1983.

Answer 1

Solution natin . We have been given the Customex Price Index (CPI). for the yeat 2000-2005. All of the values use a setélence year lot base year) of 1983 You CPI . 2000 2001 Si 2002 2003 2004 2005 . 172.4 l 178 179. 91 : 183.7 189.7 194.5 The formula for calculating given by CPI for single item is CPFs x 100. . updated cost toe desired year base period cost Note that, CPI measures the changes in price level of custome_goods and services purchased by household. Suppose He get, CPI = 1 it tells us that. $ 100 for a base year is equivalent $2 for the current year. ( for which CPI is calculated )

. And bence, only the option @ $ 100 in 1983 would be $ 172-40 in 2000 ha is coslect. equivalent to A tan ud 101