The Consumer Price Index is
A)A measure of changes in the average price of all goods and services.
B)A measure of changes in the average price of consumer goods and services.
C)Used to measure the impact of business speculation on consumers.
D)The impact felt by consumers who move into a higher tax bracket because of inflation.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is a measure of changes in the average price of consumer goods and services. It is calculated by collecting data on prices of a representative basket of goods and services commonly consumed by urban households in a given country. The CPI is used to gauge inflation and evaluate the effectiveness of economic policies aimed at controlling it.

The Consumer Price Index Is