Cost of living indexes
A) automatically adjust for changes in product quality.
B) are based on a fixed package of goods and services.
C) do not include housing costs.
D) recognize that consumers will substitute lower for higher priced items.

Question

Quizplus · Accepted Answer

Cost of living indexes are based on a fixed package of goods and services, which means they track the price changes of the same set of items over time to measure inflation or the cost of living changes.

Cost of Living Indexes