The consumer price index (CPI)
A)is the ratio of the average price of a typical basket of goods to the cost of producing those goods.
B)compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2.
C)compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period.
D)measures the increase in the prices of the goods included in GDP.

Question

Quizplus · Accepted Answer

The CPI measures the cost of a basket of goods and services typically consumed in a base period and compares it to the cost of the same basket in the current period, reflecting changes in the price level over time.

The Consumer Price Index (CPI)