Multiple Choice – Section 01B: The Consumer Price Index 1.Supposethetypicalhouseholdspends$3,500ongoodsandservicesduringthemonthofJanuary,and$4,300onthesamegoodsandservicesinFebruary.UsingJanuaryasthebaseperiod,whatistheconsumerpriceindexforFebruary? a.151.4 b.81.4 c.55.1 d.122.9 Table24-9 ThetablebelowliststhepergallonpricesofgasandmilkforthemonthsofApril,May,andJune.Assumethatthetypicalconsumerbuys60gallonsofgasand4gallonsofmilkeachmonth,andthatAprilisthebaseperiod. Month PriceofGas PriceofMilk April $2.00 $3.50 May $3.50 $3.25 June $3.85 $3.58 2.RefertoTable24-9.WhatistheconsumerpriceindexforMay? a.60 b.132 c.166 d.123 3.RefertoTable24-9.WhatistheinflationrateforMay? a.66.4% b.60.1% c.-4.1% d.10% Table24-10 Thetablebelowshowsthepricesofbaseballsandbaseballbatsforthreeyears.Assumethetypicalconsumer’sbasketconsistsof6baseballsand2baseballbats. Year PriceofaBaseball PriceofaBaseballBat 2008 $3.25 $75 2009 $3.75 $82 2010 $4.50 $96 4.RefertoTable24-10.Howmuchwasthecostofthebasketin2008? a.$78.25 b.$84.75 c.$169.50 d.$456.50 5.RefertoTable24-10.If2008isthebaseyear,thentheconsumerpriceindexwas a.100.00in2008,110.03in2009,and117.43in2010. […]