For the CPI,the market basket is expressed in terms of what the goods cost in
A)1929.
B)2000.
C)The base period.
D)The optimal perioD.A base year is used as a frame of reference for the price level.

Question

Quizplus · Accepted Answer

The market basket in the CPI is expressed in terms of what the goods cost in the base period, which serves as a reference frame for calculating price changes over time. The base period is typically updated every few years to reflect changes in consumer spending patterns and the availability of goods and services. Choice A is incorrect because 1929 is not necessarily the base period used for calculating the CPI. Choice B is incorrect because the market basket does not necessarily reflect the prices of goods in 2000, unless 2000 happens to be the base period. Choice D is incorrect because there is no optimal period for calculating the CPI, as different periods may be more or less suitable depending on various factors such as the availability of data and the stability of market conditions.

For the CPI,the Market Basket Is Expressed in Terms of What