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Suppose that the base year for CPI is 2014. The cost of the CPI basket in...

Suppose that the base year for CPI is 2014. The cost of the CPI basket in 2014 is $50; the cost of the basket in 2015 was $60, and the cost of the basket in 2016 was $66. What was the CPI in 2015?

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Answer #1

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CPI=(current year cost of the basket/base year cost of the basket)*100

CPI in 2015=(60/50)*100=120

CPI in 2016=(66/50)*100=132

CPI in 2014=100 as it is the base year

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