Which of the following is the significance of a country's price index?
A) It helps in measuring changes in the nominal interest rate in the country.
B) It helps in measuring the total disposable income of the country.
C) It helps in determining the country's real GDP each year.
D) It helps in measuring changes in the prices of only luxury goods.
E) It helps in measuring the demand for goods and services exported by the country.

Question

Quizplus · Accepted Answer

A country's price index, also known as the Consumer Price Index (CPI), is a measure of the average price level of goods and services consumed by households. It helps in determining the country's real GDP each year by adjusting for inflation.

Which of the Following Is the Significance of a Country's