The Reference Base Period Is 2002

Multiple Choice

The reference base period is 2002. A consumer price index of 122 in 2014 means that

A) prices of consumer goods have gone up by a factor of 12.2.
B) if the price of a good was $100 in 2002, its price in 2014 is $122.
C) prices of consumer goods have more than doubled.
D) the market basket of consumer goods that cost $122 in 2002 can be purchased for $100 in 2014.
E) the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services was 22 percent higher in 2014 than it was on average during 2002.