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Suppose that you were born in 2001. Also, suppose that your mother received a $100 baby shower gift at your birth. How much would it cost to buy a similar amount of goods and services in 2018, given that the CPI was 177.1 in 2001 and 251.1 in 2018?
a. $70.53
b. $100.00
c. $141.78
d. $241.11

Respuesta :

saqib097

Answer:

c. $141.78

Explanation:

CPI or consumer price index is a measure that examines the weighted average of prices of a basket of consumer goods and services.

We will calculate the price of $100 baby shower gift in 2018 by,

Amount in 2018 Dollars = Amount in 2001 Dollars × (Price Level in 2018 / Price Level in 2001)

= $100×(251.1/177.1) = $141.78

It would cost $141.78 to buy a similar amount of goods and services in 2018.

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