In the context of price levels, which of the following measures is used by the government to evaluate inflation?
A)The seller pricing rank
B)The consumer price index
C)The price-weighted activity index
D)The knowledge pricing rank

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is a commonly used measure of inflation by the government. It is calculated by tracking the changes in prices of a basket of goods and services consumed by households. The CPI reflects the average price level of products and services purchased by consumers and is widely used to set economic policies and make decisions about monetary policy. The other options (seller pricing rank, price-weighted activity index, and knowledge pricing rank) are not commonly used measures of inflation by the government.

In the Context of Price Levels, Which of the Following