If the Consumer Price Index for a Certain Year Is

question 45

Multiple Choice

If the Consumer Price Index for a certain year is 120, this means that the average price of consumer items in that year was

• A) 20 percent higher than the average price in the base period 1982-84.
• B) about $120 per basket of consumer goods and services.
• C) 120 percent higher than the average price in the base period 1982-84.
• D) 20 percent higher than the average price of the preceding year.

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