PRC-3 · Chapter 18 · Question 9 of 33
To precisely track inflation, government statisticians select a typical 'basket' of hundreds of goods and services bought by an average household and track their price changes over time. What is this dominant metric called?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The Consumer Price Index (CPI)
Explanation
The CPI is the most widely used measure of inflation. It acts as an index number that tracks changes in the general price level of a standardized basket of consumer goods.
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