PRC-3 · Chapter 18 · Question 29 of 33
To accurately measure the national inflation rate, government statisticians track the changing prices of a standard 'basket' of goods typically bought by an average household. This index is called the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Consumer Price Index (CPI)
Explanation
The CPI measures the average change over time in the prices paid by typical urban consumers for a market basket of consumer goods and services.
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