Suppose the Base Year of the CPI Is 2017, and the CPI

question 3

Multiple Choice

Suppose the base year of the CPI is 2017, and the CPI calculated for 2019 was 102. What is the correct interpretation of this number?

• A) The cost of living for a typical consumer decreased by 2 percent since 2017.
• B) The cost of living for a typical consumer increased by 1.9 percent since 2017.
• C) The cost of living for a typical consumer is 2 percent higher than it was in 2017.
• D) The cost of living is unchanged; the CPI does not measure changes in the price level.