The Consumer Price Index (CPI) is a measure of the average price paid by urban consumers for a "market basket" of consumer goods and services.

Question

Quizplus · Accepted Answer

The given statement is true. The CPI is calculated by measuring the prices of a specific set of goods and services purchased by urban households, and then comparing those prices to the prices during a base period. This calculation provides a measure of the inflation rate or change in prices over time.

The Consumer Price Index (CPI) Is a Measure of the Average