How Often Does the Basket of Goods in the Consumer

question 87

Multiple Choice

How often does the basket of goods in the consumer price index change?

• A) occasionally, as does the basket of goods used to compute the GDP deflator
• B) yearly, as does the basket of goods used to compute the GDP deflator
• C) occasionally, while the basket of goods used to compute the GDP deflator changes yearly
• D) yearly, while the basket of goods used to compute the GDP deflator changes occasionally

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Definitions:

US$

The United States Dollar, the official currency of the United States, represented as USD.

Euro

The official currency of 19 of the 27 European Union countries, which together make up the Eurozone.

Buying Power

The capacity of an individual or company to purchase goods and services, often related to the amount of money available.

CPI

A metric known as the Consumer Price Index evaluates the overall weighted pricing of a range of consumer items and services, covering areas such as healthcare, food, and transportation.