The table below shows the prices a household must pay for goods they purchase regularly.   Year Price of Bread Price of Peanut Butter Price of Milk 1 $2.00 $3.50 $4.10 2 2.25 3.65 4.15 3 2.40 3.70 4.18   Suppose the yearly consumption of the household 60 loaves of bread, 97 jars of peanut butter, and 41 gallons of milk. What is CPI in year 3, using year 1 as a base year?   Multiple Choice   The CPI is 1.07.   The CPI is 659.20.   The CPI is 105.04.   The CPI is 107.44

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter13: Inflation
Section: Chapter Questions
Problem 2SQP
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The table below shows the prices a household must pay for goods they purchase regularly.

 

Year Price of Bread Price of Peanut Butter Price of Milk
1 $2.00 $3.50 $4.10
2 2.25 3.65 4.15
3 2.40 3.70 4.18

 

Suppose the yearly consumption of the household 60 loaves of bread, 97 jars of peanut butter, and 41 gallons of milk. What is CPI in year 3, using year 1 as a base year?

 

Multiple Choice
  •  
    The CPI is 1.07.
  •  

    The CPI is 659.20.

  •  

    The CPI is 105.04.

  •  

    The CPI is 107.44

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