QuestionAugust 20, 2025

The Consumer Price Index measures which of the following? Inflation Unemployment GDP Growth rates

The Consumer Price Index measures which of the following? Inflation Unemployment GDP Growth rates
The Consumer Price Index measures which of the following?
Inflation
Unemployment
GDP
Growth rates

Solution
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Answer

Inflation Explanation 1. Identify the purpose of CPI The Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services purchased by households. 2. Determine what CPI indicates CPI is primarily used to indicate inflation, reflecting how prices change over time.

Explanation

1. Identify the purpose of CPI<br /> The Consumer Price Index (CPI) measures changes in the price level of a basket of consumer goods and services purchased by households.<br /><br />2. Determine what CPI indicates<br /> CPI is primarily used to indicate inflation, reflecting how prices change over time.
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