The consumer price index tires to measure how much consumer incomes must rise in order to maintain a constant
A)level of real GDP.
B)ratio of consumption to GDP.
C)ratio of net exports to GDP.
D)standard of living.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures the changes in the cost of living for consumers over time. In other words, it measures how much consumers need to spend on goods and services to maintain the same standard of living. Therefore, the correct choice is D-Standard of living.

The Consumer Price Index Tires to Measure How Much Consumer