Suppose That 1983 Is the Base Year for the Consumer

question 6

Multiple Choice

Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2012 the CPI was 226.What does this "226" mean?

• A) What cost $100 in 1983 on average cost 226 times as much in 2012.
• B) What cost $100 in 1983 on average cost $226 more in 2012.
• C) What cost $100 in 1983 on average cost 100/226 (or 0.44) times as much in 2012 (that is, it will cost $22 in 2012).
• D) What cost $100 in 1983 on average cost $126 more in 2012.

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A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

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A definite or clearly defined stretch of time.

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