Which of the following statements is not true regarding the Consumer Price Index (CPI)?
A) The CPI describes the change in prices from one period to the next for a fixed "market basket" of goods and services.
B) The CPI is used as a measurement of inflation.
C) The CPI is used as a "cost of living" adjustment in labor contracts.
D) The CPI is used as a means of deflating current prices or wages to "real" prices wages.
E) All of these statements are true.

Question

Quizplus · Accepted Answer

All the statements provided about the Consumer Price Index (CPI) are true. The CPI does indeed describe changes in prices for a fixed basket of goods and services, is used as a measure of inflation, is often applied in cost of living adjustments in labor contracts, and is utilized to adjust current prices or wages to real values to account for inflation.

Which of the Following Statements Is Not True Regarding the Consumer