Which of the following is the significance of a country's price index?
A)It helps in measuring changes in the nominal interest rate in a country.
B)It helps in measuring the total disposable income of a country.
C)It helps in determining a country's real GDP each year.
D)It helps in measuring changes in the prices of only luxury goods.
E)It helps in measuring the demand for goods and services exported by a country.

Question

Quizplus · Accepted Answer

A country's price index, also known as the consumer price index (CPI), measures the average change over time in the prices paid by consumers for a basket of goods and services. This helps in determining the inflation rate, which is important for calculating the country's real GDP.

Which of the Following Is the Significance of a Country's