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SIE: Economic Indicators
SIE practice questioneasyEconomic Indicators - CPI

Which economic indicator measures the average change over time in the prices paid by consumers for a basket of goods and services?

  1. AUnemployment Rate
  2. BGross Domestic Product (GDP)
  3. CProducer Price Index (PPI)
  4. DConsumer Price Index (CPI)✓ Correct answer
Explanation

Why DConsumer Price Index (CPI)

CPI tracks the price changes of consumer goods and services, reflecting inflation. GDP measures the economy’s output. PPI tracks wholesale prices, and the unemployment rate shows the percentage of jobless people.

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