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14 December, 15:56

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

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Answers (1)
  1. 14 December, 16:00
    0
    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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Home » Business » 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.
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