The consumer price index measures changes in
A)the prices of all goods and services
B)the prices of goods that are sold
C)the total cost of a specific market basket of consumer goods and services
D)the total costs of all goods and services
E)the total costs of goods and services purchased by firms

Question

Quizplus · Accepted Answer

The consumer price index (CPI) measures changes in the total cost of a specific market basket of consumer goods and services over time. It is not a measure of all goods and services, nor is it a measure of the prices of goods that are sold or the total costs of all goods and services. Additionally, it does not measure the total costs of goods and services purchased by firms.

The Consumer Price Index Measures Changes in