The ..... considers the weighted averages of a group of consumer goods and services. (it looks at a bunch of consumer goods and services and then tries to estimate how important they are to consumers budgets)

INFLATION

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The ____ considers the weighted averages of a group of consumer goods and services. (it looks at a bunch of consumer goods and services and then tries to estimate how important they are to consumers’ budgets)

A	Consumer price index
B	Aggregate supply
C	Producer price index
D	Aggregate demand

Explanation:

Detailed explanation-1: -What is the Consumer Price Index (CPI)? The CPI is an indicator of the change in the average retail prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Detailed explanation-2: -The weights are meant to reflect the relative importance of the goods and services as measured by their shares in the total consumption of households. The weight attached to each good or service determines the impact that its price change will have on the overall index.

Detailed explanation-3: -The Consumer Price Index (CPI) consists of a family of indexes that measure price change experienced by urban consumers. Specifically, the CPI measures the average change in price over time of a market basket of consumer goods and services.

Detailed explanation-4: -The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

INFLATION