Question

"The value of the CPI for the reference base period is always" _____-a. 1. b. 100. c. 50. d. 0. e. None of the above, because the value of the CPI is not always the same for all reference base periods.

Answer 1

Athe value of CPI for reference period is 100.

Step-by-step explanation:

Value of Customer price index (CPI) is always 100 for the reference base period.

This implies that if we want to calculate the CPI for a future period, take the price of the good divided by price in reference period, and multiply by 100

CPI= (Present price/Future Price)*100