Multiple choice

The consumer price index is designed to measure the degree to which

  1. incomes are distributed among the poor and rich over time

  2. the cost of purchasing a bundle of consumer goods has changed with time

  3. consumption patterns have changed with time because of higher prices

  4. consumer prices have risen, relative to wages
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

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