The economic statistic used to measure the level of prices is the:
A) GDP.
B) CPI.
C) GNP.
D) real GDP.

Question

Quizplus · Accepted Answer

The CPI, or Consumer Price Index, is a measure of the average change in prices over time for a basket of goods and services commonly consumed by households. It provides a way to gauge inflation and is widely used by policymakers and economists to make decisions about monetary policy and other economic matters. GDP (A) measures the value of all goods and services produced within a country's borders, while GNP (C) measures the total output of goods and services produced by a country's residents, regardless of location. Real GDP (D) is adjusted for inflation and therefore provides a measure of economic growth that accounts for changes in prices.

The Economic Statistic Used to Measure the Level of Prices