A measure comparing the prices of consumer goods and services that a household typically purchases to the prices of those goods and services purchased in a base year is
A) the GDP deflator.
B) the consumer price index.
C) the price level.
D) inflation.
E) the base measure.

Question

Quizplus · Accepted Answer

The measure described is the consumer price index, which compares the prices of goods and services in a current year to a base year. The GDP deflator is a measure of the overall price level in an economy, not specific to household purchases. Inflation is a general rise in prices, not a specific measure. The base measure is not a recognized economic term.

A Measure Comparing the Prices of Consumer Goods and Services