Which of the following measures of inflation is based on a fixed basket of goods and services for a typical household?
A) the index of household expenditures
B) the producer price index
C) the GDP deflator
D) the consumer price index

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is based on a fixed basket of goods and services purchased by a typical household. It measures the changes in the prices of these goods and services over time, providing an estimate of the inflation rate experienced by consumers.

Which of the Following Measures of Inflation Is Based on a Fixed