By keeping the basket of goods and services the same when computing the CPI, the Bureau of Labor Statistics isolates the effects of price changes from the effect of any quantity changes that might be occurring at the same time.

Question

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The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. By keeping the basket of goods and services constant, the CPI specifically aims to measure the effect of price changes on consumer expenses, isolating these from changes in the quantity or quality of goods and services consumed.

By Keeping the Basket of Goods and Services the Same