The consumer price index measures:
A)the cost of all goods and services produced in the U.S.economy.
B)the average change over time in the selling prices received by domestic producers for their output.
C)the cost of a fixed market basket of consumer goods and services produced in the U.S.economy.
D)the ratio of an economy's nominal GDP to its real GDP.
E)the income distribution of an economy.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the cost of a fixed market basket of consumer goods and services produced in the U.S. economy. It tracks changes in the prices of goods and services that an average urban household purchases, including food, clothing, housing, transportation, medical care, recreation, and education. The CPI is used to measure inflation, which is the rate of increase in the price level of goods and services in an economy over a period of time.

The Consumer Price Index Measures