Computing the CPI is important because it provides ________.
A)a rough measure of the cost of living
B)it is used as a benchmark in labor negotiations
C)government uses it to index entitlements,such as social security benefits,so that beneficiaries do not lose purchasing power in periods of inflation
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All three options (A, B, and C) are correct reasons why computing the CPI is important. It provides a rough measure of the cost of living for individuals and policymakers, and it is also used as a benchmark in labor negotiations. Additionally, the government uses the CPI to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation.

Computing the CPI Is Important Because It Provides ________