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The Consumer Price Index

Question 59

Multiple Choice

The consumer price index


A) measures inflation by measuring price increases.
B) measures price increases but not changes in consumer purchasing patterns.
C) is not able to measure deflation.
D) continues to include the same items in the typical "basket of goods" so that price increases in previous years can be compared to price increases in the current year.
E) is no longer accepted as a good measure of price increases.

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