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The Consumer Price Index (CPI)

Question 34

Multiple Choice

The consumer price index (CPI) :


A) measures the increase in the cost of the market basket relative to the cost in a given base year.
B) is always 100 in the final year of measurement.
C) helps us understand why current production compares with the cost of living at some time in the past.
D) is a perfect measure of how prices change for all goods and services in the economy.

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