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AP® Macroeconomics

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CPI and Base Year Change

APMACR-NYAYGO

Why do base years change regarding CPI calculations? In other words, why would one not use the same base number from one point forward?

I. Tastes and Preference changes need to be accounted for

II. Technology change must be incorporated from time to time

III. If not reviewed, market baskets may not reflect purchase habits.

A

I Only

B

I and II

C

I and III

D

II and III

E

I, II and III