The most commonly used measure of changes in the cost of living for households
A)real GDP.
B)the CPI.
C)nominal GDP.
D)the GDP deflator.

Question

Quizplus · Accepted Answer

The CPI (Consumer Price Index) is specifically designed to measure changes in the cost of living for households by tracking the prices of a basket of goods and services bought by households. Real GDP and nominal GDP measure changes in output and income in the economy as a whole, while the GDP deflator measures changes in overall prices of goods and services produced in an economy. Therefore, B is the most appropriate answer.

The Most Commonly Used Measure of Changes in the Cost