A monthly price index that describes the changes in prices from one period to another for a "market basket" of goods and services is known as the ________.
A)Laspeyres index
B)Deflator index
C)Consumer Price Index
D)Paasche index

Question

Quizplus · Accepted Answer

A monthly price index that describes the changes in prices from one period to another for a "market basket" of goods and services is known as the Consumer Price Index (CPI). The Laspeyres index and Paasche index are also price indices but are not specific to a "market basket" of goods and services. The Deflator index is a measure of the price level of goods and services in an economy and is not specific to changes in prices over time.

A Monthly Price Index That Describes the Changes in Prices