The Consumer Price Index (CPI)

question 100

Multiple Choice

The consumer price index (CPI) :

• A) adjusts for changes in product quality.
• B) includes separate market baskets of goods and services for both base and current years.
• C) includes only goods and services bought by typical urban consumer.
• D) uses current year quantities of goods and services.

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Definitions:

Manufactured Goods

Products that have been processed or transformed from raw materials into finished items through the use of machinery or human effort.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, deflation, and a significant fall in economic output.

Worst Recession

Refers to the most severe period of economic decline in activity across an economy, lasting more than a few months.

World's Leading Industrial Power

A country that dominates global manufacturing output, characterized by its advanced technological capability and extensive industrial infrastructure.