Asked by Jeeva Senthilnathan on Jun 06, 2024
Verified
If the CPI is 200,then the price level has _____ since the base year.
A) doubled
B) quadrupled
C) tripled
D) increased five times
E) increased six times
Consumer Price Index
An index that looks at the weighted average prices of a collection of consumer products and services, like food, transportation, and healthcare, to gauge inflation.
Price Level
An overall average price for the complete array of goods and services in the economy.
- Understand the role and change in monetary value over time due to inflation.
Verified Answer
AC
Adrian CastanedaJun 10, 2024
Final Answer :
A
Explanation :
A CPI of 200 means that prices have doubled since the base year (which typically has a CPI of 100). The CPI is a measure of the average price level of a basket of goods and services over time, so a higher CPI indicates higher prices overall.
Learning Objectives
- Understand the role and change in monetary value over time due to inflation.