One function of the CPI is to allow consumers to determine the degree to which their purchasing power is being eroded by price increases.

Question

Quizplus · Accepted Answer

This statement is true. The CPI, or Consumer Price Index, is a measure of the average change over time in the prices that consumers pay for a basket of goods and services. By tracking changes in the CPI, consumers can get a sense of how much prices are increasing over time and how this inflation is affecting the value of their money.

One Function of the CPI Is to Allow Consumers to Determine