A change in the Consumer Price Index measures
A)a change in a specific absolute price.
B)a change in quantities of commodities sold.
C)a change in relative prices.
D)a change in a broad average price over some particular time span.
E)the change in gross domestic product.

Question

Quizplus · Accepted Answer

The Consumer Price Index measures the change in a broad average price level of goods and services over a particular time span, typically a month or a year. It is a measure of inflation that reflects the changes in the price level of a basket of goods and services bought by households. It is not related to changes in specific absolute prices or quantities of commodities sold, nor does it measure changes in relative prices or GDP.

A Change in the Consumer Price Index Measures