Question

20 MACRO ECON 1030 AM Sec 2 est: MyEconLab Unit 3 Assignment ECON1 nis Question: 1 pt What is the CPI and how is it calculated? The CPI is a O A. measure of the price level of all goods and services that are counted as part of GDP O B. measure of inflation O C. list of the items that an average urban household buys and the percentage weight of total expenditure giv OD. measure of the average of the prices paid by urban consumers for a fixed basket of consumer goods and CPI = O A. (Cost of CPI basket at base-period prices - Cost of CPI basket at current-period prices) x 100 B. [(Cost of CPI basket at current-period prices - Cost of CPI basket at base-period prices) - Cost of CPI bask OC. I(Cost of CPI basket at base-period prices - Cost of CPI basket at current-period prices) - Cost of CPI bask at base-period feces-cost of CPi basket at base-period prices) x 100

Answer 1

1. Option B is correct. Consumer Price Index measures the average change in prices over time that the consumers pay for the basket of goods and services and it is widely used as an economic indicator. And most widely used to measure inflation.

2. Option D is correct.