The measure of the cost of a standard basket of goods and services in any period relative to the cost of the same basket of goods and services in the base year is called the:
A) cost-of-living indicator.
B) consumption production index.
C) consumer production index.
D) consumer price index.

Question

Quizplus · Accepted Answer

The description matches the definition of the consumer price index (CPI), which tracks the changes in the prices of goods and services consumed by households, using a base year as a reference point. The CPI is used as a measure of inflation and as an indicator of changes in the cost of living over time. Choices A, B, and C are not accurate descriptions of this concept.

The Measure of the Cost of a Standard Basket of Goods