The Consumer Price Index measures the average of the prices paid by urban consumers for a ________ of consumer goods and services.

Question

Quizplus · Accepted Answer

The Consumer Price Index (CPI) measures the average of the prices paid by urban consumers for a fixed market basket of consumer goods and services. This means that the goods and services in the market basket are selected and remain the same over time, allowing for a consistent measure of inflation. The other options (A, B, D, and E) do not accurately describe how the CPI is calculated.

The Consumer Price Index Measures the Average of the Prices