SIE practice questioneasyEconomic Indicators - CPI
What does the Consumer Price Index (CPI) measure?
- AChanges in the cost of a basket of goods and services✓ Correct answer
- BEconomic output of a country
- CAverage wages across industries
- DInterest rates set by the Federal Reserve
Explanation
Why A — Changes in the cost of a basket of goods and services
CPI measures changes in consumer goods and services prices. GDP measures output, wages are not measured by CPI, and the Fed sets interest rates.
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