The Consumer Price Index Is

question 149

Multiple Choice

The consumer price index is

• A) a measure of the increase in the average price of all of the goods that are included in the calculation of GDP.
• B) a comparison of the cost of buying a typical bundle of goods during a given period with the cost of buying the same bundle during an earlier base period.
• C) the ratio of the average price of a typical market basket of goods compared to the cost of producing those goods during the previous year.
• D) a comparison of the cost of the typical bundle of goods consumed in period 1 with the cost of a different bundle of goods typically consumed in period 2.

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Definitions:

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Indirect Compensation

Benefits provided to employees that are not included in direct salary or wages, such as health insurance, retirement plans, and paid time off.

On-site Daycare/Eldercare

Facilities provided by employers or institutions at the workplace to care for employees' children or elderly dependents during working hours.

Childless/Parentless Employees

Workers who do not have children or living parents, which can influence their benefits needs or workplace accommodations.