What does the Consumer Price Index (CPI)measure?
A) prices of durable goods
B) prices of non durable goods
C) the cost of living over time
D) the cost of replacing lost items

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the cost of living over time, specifically by tracking the prices of a basket of goods and services typically purchased by households. This includes both durable and non-durable goods, as well as services like healthcare, recreation, and education. It provides an important indicator of inflation and is widely used by policymakers to inform decisions about monetary policy and social welfare programs.

What Does the Consumer Price Index (CPI)measure