The Consumer Price Index Is ________

question 49

Multiple Choice

The Consumer Price Index is ________.

• A)an annual price index published by the Bureau of Labor Statistics to measure the percent change in stock market indexes such as the DJIA
• B)a Laspeyres index that allows consumers to determine the degree to which their purchasing power is being eroded by price increases
• C)a monthly price index that measures the change in price of a fixed market basket of goods and services from one period to another
• D)both a Laspeyres index that allows consumers to determine the degree to which their purchasing power is being eroded by price increases and a monthly price index that measures the change in price of a fixed market basket of goods and services from one period to another

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Definitions:

Pretax Income

Income of a company before taxes are deducted; also known as earnings before tax.