Which economic measure provides the most information about what is happening to prices of consumer goods?
A) GDP
B) CPI
C) Dow Jones Index
D) GNP

Question

Quizplus · Accepted Answer

The CPI (Consumer Price Index) provides information about the prices of a basket of goods and services commonly purchased by households. It is considered the most comprehensive measure of inflation and provides important information about changes in consumer prices over time. GDP (Gross Domestic Product) measures the overall economic activity in a country, but does not specifically focus on consumer prices. The Dow Jones Index measures the performance of the stock market, which is not necessarily reflective of changes in consumer prices. GNP (Gross National Product) measures the total output of a country's economy, including goods and services produced by domestic and foreign-owned companies.

Which Economic Measure Provides the Most Information About What Is