What price index is probably most relevant to households trying to evaluate their changing financial position over time?
A)the Raw Materials Price Index
B)the Intermediate Products Price Index
C)the GDP deflator
D)the Consumer Price Index

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is the best choice as it measures the average change in prices over time for a fixed basket of goods and services commonly purchased by households. This makes it relevant for households trying to evaluate their changing financial position over time, as it helps to gauge the impact of inflation on their cost of living.

What Price Index Is Probably Most Relevant to Households Trying