Question

What does the consumer price index measure?

A. The amount of items exported from a country

B. The number of people looking for jobs

C. The tax level on inherited wealth

D. The costs of goods and services
SUBMIT

Answer 1

Answer:

D. The costs of goods and services

Explanation:

The consumer price index measures the changes in prices of a basket of good and services that represents consumption behavior in the market. It measures and records quantitative changes in the costs of a basket of products and services in a period.

The consumer price index (CPI)makes comparison in the costs of the same basket in the current season against the previous period. The objective being to determine if prices are increasing or decreasing. The CPI, therefore, measures the costs of goods and services to detect price differences. Due to its definition and formula, the CPI is used to indicate the inflation level in the economy.