Computing the CPI is important because ________.
A)it is a very accurate and error-free measure of the cost of living
B)it helps predict spending patterns for particular goods and services
C)government uses it to index entitlements,such as social security benefits,so that beneficiaries do not lose purchasing power in periods of inflation
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Computing the CPI is important because government uses it to index entitlements, such as social security benefits, so that beneficiaries do not lose purchasing power in periods of inflation. While it helps predict spending patterns for particular goods and services, and is a good measure of the cost of living, it is not completely accurate and error-free.

Computing the CPI Is Important Because ________