The CPI is based on
A)a basket of goods that is updated every year.
B)a broader range of goods and services than the GDP deflator.
C)the same set of goods and services as the GDP deflator.
D)a fixed basket of goods purchased during an earlier base period.

Question

Quizplus · Accepted Answer

The CPI is based on a fixed basket of goods purchased during an earlier base period. It is used to measure changes in the cost of living over time by comparing the current cost of the fixed basket to the cost of the same basket in the base period.

The CPI Is Based on