A monthly price index that uses the price changes in consumer goods and services for measuring the changes in consumer prices over time is known as the
A)Paasche Index
B)Consumer Price Index
C)Producer Price Index
D)Laspeyres Index

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is a monthly price index that measures the changes in consumer prices over time. It tracks the price changes of a basket of goods and services typically purchased by households, including food, energy, housing, clothing, transportation, medical care, recreation, and education. It is widely used as a measure of inflation and an indicator of the effectiveness of government economic policies. The Paasche Index and the Laspeyres Index are also price indices used for different purposes, but they do not focus on consumer prices specifically. The Producer Price Index, on the other hand, tracks the price changes of goods and services produced by industries in the U.S. economy, rather than the prices that consumers actually pay for them.

A Monthly Price Index That Uses the Price Changes in Consumer