Which of the following price indexes measures the cost of living?
A)producer price index
B)wholesale price index
C)consumer price index
D)GDP deflator

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the average change in the prices paid by urban consumers for a fixed basket of goods and services, including food, transportation, housing, and medical care. This index is often used as a measure of inflation and the cost of living. The producer price index (PPI) and wholesale price index (WPI) measure the changes in prices at the wholesale level, while the GDP deflator reflects the overall price level of goods and services produced in an economy.

Which of the Following Price Indexes Measures the Cost of Living