The consumer price index reflects:

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It reflects the prices of products and services in the United States, but specifically for urban consumers. Option A is partially correct but lacks the specificity of the CPI being for urban consumers only. Options B and D are both incorrect as they refer to prices around the world, but the CPI is only concerned with prices in the United States. Option E is incorrect as the CPI is a well-established index used by the government and economists to track inflation and the cost of living for consumers in the US.

The Consumer Price Index Reflects