Consumer Price Index is
A) a weighted aggregate price index where the weight for each item is its current-period quantity.
B) a weighted aggregate price index where the weight for each item is its last-period quantity.
C) an index that is designed to measure changes in quantities over time.
D) an index that is designed to measure changes in production levels over time.

Question

Quizplus · Accepted Answer

The Consumer Price Index is a weighted aggregate price index where the weight for each item is its current-period quantity. This means that the index takes into account the current amount of each item being purchased by consumers, giving more weight to items that are purchased more frequently. This allows for a more accurate measurement of changes in the cost of living for consumers over time.

Consumer Price Index Is