The CPI is used to
A)monitor changes in the level of wholesale prices in the economy.
B)monitor changes in the cost of living over time.
C)monitor changes in the level of real GDP over time.
D)monitor changes in the stock market.

Question

Quizplus · Accepted Answer

The CPI, or consumer price index, is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is used to monitor changes in the cost of living over time, as it reflects the inflation rate and how purchasing power is affected. It is not used to monitor wholesale prices, real GDP, or the stock market.

The CPI Is Used to