What Does the Consumer Price Index Measure

question 20

Multiple Choice

What does the consumer price index measure?  

• A) the cost of a market basket of consumer goods and services relative to its cost in some base year 
• B) the change in the average price of a market basket of "necessary" goods and services 
• C) the annual inflation rate in the producers' goods market 
• D) the change in the average price level of all final goods and services

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Definitions:

Cause

A reason or motivation for an action or event.

Suffer

To experience or be subjected to something bad or unpleasant.

Cultural Differences

The variations in the ways of life, beliefs, norms, and behaviors among different groups of people or societies.

Susceptible

Likely to be influenced or harmed by a particular thing or condition.