The Consumer Price Index measures the cost of:
A) a fixed basket of goods and services.
B) a changing basket of goods and services.
C) all goods and services purchased by consumers.
D) goods and services required to live above the poverty level.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the cost of a fixed basket of goods and services, which are representative of what an average consumer buys. The basket includes items such as food, housing, transportation, and healthcare, and the prices of these items are tracked over time to calculate changes in the overall cost of living.

The Consumer Price Index Measures the Cost Of