Which of the Following Statements About the Consumer Price Index

question 55

Multiple Choice

Which of the following statements about the Consumer Price Index is the most accurate?

• A)When it increases, the average family has to spend less to maintain their standard of living.
• B)When it increases, the average family has to spend more to maintain their standard of living.
• C)It is a broader measure of inflation than is the GDP deflator.
• D)When it increases, the standard of living of the average family does not change.

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Definitions:

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