To determine the consumer price index (CPI),_____.
A)the values of the current market basket at current and base-year prices need to be known
B)the values of the base-year market basket at current and base-year prices need to be known
C)the values of the current market basket at current prices and the base-year market basket at base-year prices need to be known
D)only the current market basket at base-year prices needs to be known
E)only the current market basket at current prices needs to be known

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) is calculated by taking the values of the base-year market basket at both current and base-year prices. This allows for a comparison of how much the cost of the same set of goods and services has changed over time, which is essential for measuring inflation.

To Determine the Consumer Price Index (CPI),_____