The amount of goods and services each dollar buys at a given time is called:
A) inflation.
B) the consumer price index (CPI).
C) purchasing power.
D) the gross domestic product (GDP).
E) the opportunity cost.

Question

Quizplus · Accepted Answer

The amount of goods and services each dollar buys is called purchasing power. Inflation refers to the rate at which the general level of prices for goods and services is rising. The consumer price index (CPI) is a measure of inflation that tracks the changes in the price of a basket of goods and services over time. Gross domestic product (GDP) is the total value of goods and services produced in a country over a specific period of time. Opportunity cost refers to the cost of foregone alternatives when choosing one option over another. None of these definitions match the given term as closely as purchasing power.

The Amount of Goods and Services Each Dollar Buys at a Given