Ask Question
3 June, 10:18

Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected as the base year. In 2002, the basket's cost was $600; in 2004, the basket's cost was $650; and in 2006, the basket's cost was $700. The value of the CPI in 2004 was (rounded to one decimal place)

0
Answers (1)
  1. 3 June, 12:10
    0
    The answer is: The CPI for 2004 is 108.3

    Explanation:

    The Consumer Price Index (CPI) for 2004 can be calculated using the following formula:

    CPI 2004 = (2004 basket cost / base year basket cost) x 100

    CPI 2004 = (650 / 600) x 100

    CPI 2004 = 108.3

    The CPI measures changes in the price level of a basket of goods and services relative to a base year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected as the base ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers