The
Explanation of Solution
CPI is a measure that examines the changes in the
Thus, the CPI in the base year or bench mark year is 100. The bench mark CPI is used to compare the changes in the price level in the current year to the price level of the same basket of goods in the reference year.
Consumer Price index (CPI): Consumer price index is a measure that examines the changes in price levels of a basket of consumer goods and services for the present time from base year.
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Economics (MindTap Course List)
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co