Suppose That 1983 Is the Base Year for the Consumer

question 39

Multiple Choice

Suppose that 1983 is the base year for the Consumer Price Index (CPI) and in 2008 the CPI was 220.What does this "220" mean?

• A) What cost $100 in 1983 on average cost 2.20 times as much in 2008.
• B) What cost $100 in 1983 on average cost $220 more in 2008.
• C) What cost $100 in 1983 on average cost 0.22 times as much in 2008 (that is, it cost $22 in 2008).
• D) What cost $100 in 1983 on average cost $22 more in 2008.

---

Definitions:

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that describes the body's short-term and long-term reactions to stress.

Allergic Reaction

An immune system response to a foreign substance that is not typically harmful to the body, such as pollen or certain foods.

Emergency Room

A medical treatment facility specializing in emergency medicine, the acute care of patients who present without prior appointment, either by their own means or by ambulance.

Reappraise

The process of reevaluating one's thoughts, feelings, or beliefs in light of new information or perspectives.