Asked by Bennie Raymond on May 12, 2024
Verified
If prices have risen 220 percent since the base year,the current level of the CPI is
A) 20.
B) 120.
C) 220.
D) 320.
E) 420.
CPI
Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, often used as an indicator of inflation.
- Evaluate the alterations in the Consumer Price Index (CPI) and their significance for the economic environment.
Verified Answer
JR
Jacqueline RobbinsMay 12, 2024
Final Answer :
D
Explanation :
If prices have risen 220 percent since the base year, it means the current level of the CPI is 320 (100% + 220% = 320%). Therefore, D is the correct answer.
Learning Objectives
- Evaluate the alterations in the Consumer Price Index (CPI) and their significance for the economic environment.