PRC-3 · Chapter 18 · Question 16 of 33
To measure the national inflation rate accurately, government statisticians track the changing prices of a standard 'basket' of hundreds of goods and services typically bought by an average household. This primary metric is called the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Consumer Price Index (CPI)
Explanation
The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, acting as the primary indicator of inflation.
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