Asked by
Priscilla Nicole Mendoza
on Oct 13, 2024
Verified
Suppose it costs a family $20,000 to live in 1987 and costs $50,000 to live today.If 1987 was the base year,how much is the CPI today?
A) 100
B) 200
C) 250
D) 500
E) 750
Base Year
A reference year against which economic growth, inflation, and other economic indicators are measured to assess changes over time.
- Acquire knowledge on the computation of the Consumer Price Index (CPI) and its significance in assessing inflation.
- Appreciate the effects of inflation on the capacity to purchase and the genuine value of money.
Verified Answer
AD
Learning Objectives
- Acquire knowledge on the computation of the Consumer Price Index (CPI) and its significance in assessing inflation.
- Appreciate the effects of inflation on the capacity to purchase and the genuine value of money.