Questions: The table displays CPI data for 2015 to 2019. Year CPI 2015 95 2016 100 2017 105 2018 104 2019 106 If the base year is 2016, what can be said about the cost of living in 2015? Multiple Choice - There must have been a recession in 2015 because the CPI is less than 100. - The cost of living in 2015 was lower than in 2016. - The cost of living decreased from 2014 to 2015 because the CPI was less than 100. - The cost of living increased from 2014 to 2015 because the CPI was less than 100.

The answer is B: The cost of living in 2015 was lower than in 2016.

Explanation for each option:

1. There must have been a recession in 2015 because the CPI is less than 100.

   • Incorrect. A CPI less than 100 in 2015, with 2016 as the base year, simply indicates that the cost of living was lower in 2015 compared to 2016. It does not necessarily imply a recession, which is typically characterized by a significant decline in economic activity across the economy lasting more than a few months.

2. The cost of living in 2015 was lower than in 2016.

   • Correct. Since the CPI for 2015 is 95 and the base year (2016) has a CPI of 100, this indicates that the cost of living in 2015 was lower than in 2016.

3. The cost of living decreased from 2014 to 2015 because the CPI was less than 100.

   • Incorrect. The CPI being less than 100 in 2015 does not provide information about the change in cost of living from 2014 to 2015. It only shows that the cost of living in 2015 was lower compared to the base year, 2016.

4. The cost of living increased from 2014 to 2015 because the CPI was less than 100.

   • Incorrect. Similar to the previous option, the CPI being less than 100 in 2015 does not indicate the change from 2014 to 2015. It only shows a comparison with the base year, 2016. Without CPI data for 2014, we cannot determine the change from 2014 to 2015.