To construct the Consumer Price Index,the Bureau of Labor Statistics must:
A) Convert nominal incomes into real GDP and then compute the percentage increase on an annual basis.
B) Interview people to determine their willingness and ability to work and their average income.
C) Construct an index of the growth rate of real income to measure the growth of the economy.
D) Find out what people buy and then survey how the prices of these items change.

Question

Quizplus · Accepted Answer

To construct the Consumer Price Index, the Bureau of Labor Statistics must find out what people buy and then survey how the prices of these items change. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

To Construct the Consumer Price Index,the Bureau of Labor Statistics