The consumer price index is designed to measure the extent to which
A) the cost of a typical bundle (market basket) of consumer goods has changed over time.
B) consumers have increased their spending over time.
C) GDP is allocated to consumers, rather than to business or government, over time.
D) prices paid by employers to resource owners have changed over time.

Question

Quizplus · Accepted Answer

The consumer price index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is designed to measure the extent to which the cost of a typical bundle (market basket) of consumer goods has changed over time.

The Consumer Price Index Is Designed to Measure the Extent