The index used most often to measure prices paid by households is the:
A) consumer price index.
B) wholesale price index.
C) GDP deflator.
D) producer price index.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is specifically designed to measure the average change in prices paid by urban consumers for a fixed basket of goods and services. It is the most commonly used index to measure inflation and is used by policymakers, businesses, and individuals to track changes in prices over time. The wholesale price index (WPI) measures the average change in prices of goods sold in bulk by wholesalers, while the GDP deflator measures the change in prices of all goods and services produced in an economy. The producer price index (PPI) measures the average change in prices received by domestic producers for their products.

The Index Used Most Often to Measure Prices Paid by Households