Answered: The value of the CPI in 2019 was

Business

Economics

The value of the CPI in 2019 was

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Inflation

Section: Chapter Questions

Problem 2SQP

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Question

Suppose a basket of goods and services has been selected to calculate the CPI and 2018 has been selected as the base year. In 2017, the basket’s cost was $80; in 2018, the basket’s cost was $86; and in 2019, the basket’s cost was $90. The value of the CPI in 2019 was

a	104.6 and the inflation rate was 4.6%.
b	104.6 and the inflation rate was 12.5%.
c	112.5 and the inflation rate was 12.5%.
d	112.5 and the inflation rate was 4.6%.

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