The measure of the average change in prices over time in a fixed "market basket" of goods and services is known as
A)cost-of-living allowance.
B)cost-of-living adjustment.
C)the consumer price index.
D)the inflation index.

Question

Quizplus · Accepted Answer

The measure of the average change in prices over time in a fixed "market basket" of goods and services is known as the consumer price index (CPI). Option A and B are related to adjustments or allowances given to employees in response to changes in cost of living or inflation, but they do not refer to the measure itself. Option D is a vague description and does not specify a particular measure.

The Measure of the Average Change in Prices Over Time