Which of the following is required to construct a consumer price index?

Question

Quizplus · Accepted Answer

The creation of a representative basket of goods and services is a necessary step in constructing a consumer price index. This basket should include goods and services that are commonly consumed by households and whose prices are subject to change over time. The other options, such as choosing a base year or calculating changes in consumption spending, are important parts of the process but can only be done once the basket has been created. The determination of the inflation rate is the end result of constructing the CPI, not a required step in the process.

Which of the Following Is Required to Construct a Consumer