The CPI is also referred to as
A)the GDP deflator.
B)the inflation-consumption index.
C)the cost-of-living index.
D)the producer price index.
E)the consumer profitability indicator.

Question

Quizplus · Accepted Answer

The CPI is also known as the cost-of-living index, which measures the average change in prices that consumers pay for a basket of goods and services over time. It is a widely used measure of inflation and is used by individuals, businesses, and government entities to make decisions related to budgeting, wage negotiations, Social Security benefits, and more. A, D, and E are incorrect options as they refer to different economic indicators with different purposes. The GDP deflator measures the inflation in the economy as a whole, the producer price index measures the changes in prices received by producers, and the consumer profitability index is not a commonly used economic indicator.

The CPI Is Also Referred to as