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SIE: Economic Indicators
SIE practice questioneasyEconomic Indicators - CPI

What does the Consumer Price Index (CPI) measure?

  1. AChanges in the cost of a basket of goods and services✓ Correct answer
  2. BEconomic output of a country
  3. CAverage wages across industries
  4. DInterest rates set by the Federal Reserve
Explanation

Why AChanges 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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