What is the consumer price index (CPI)?
A) The CPI is the measure of consumer prices in both rural and urban areas.It is calculated by adding up all prices.
B) The CPI is a measure of the price level based on the consumption patterns of a typical consumer.
C) The CPI is a measure of all prices in the economy.
D) The CPI is a measure of food prices,because food is what is consumed.
E) The CPI is a measure of food,clothing,and housing prices.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is a measure of the price level based on the consumption patterns of a typical consumer. It provides a measure of the average change in prices over time for a fixed basket of goods and services consumed by urban households. It is used as an indicator of inflation and is often used to adjust salaries, wages, and other payments to keep up with inflation.

What Is the Consumer Price Index (CPI)