SIE practice questioneasyEconomic Indicators - CPI
What does the Consumer Price Index (CPI) primarily measure?
- AStock market performance
- BIndustrial output
- CChanges in retail prices paid by consumers✓ Correct answer
- DInterest rates on government bonds
Explanation
Why C — Changes in retail prices paid by consumers
CPI tracks inflation by measuring changes in prices paid by consumers. Industrial output, stock performance, and interest rates are not measured by the CPI.
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