ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the cost of buying a fixed basket of goods and services, and calculating how this cost changes from year to year
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the cost of buying a basket of goods and services, which changes from year to year depending on the price level
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the cost of buying a basket of goods and services, which changes from year to year depending on consumer tastes and preferences
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all of the above, depending on what the CPI is trying to measure
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Detailed explanation-1: -It measures the average change in prices paid by consumers over a period of time for a basket of goods and services. The index is calculated and published monthly by the Bureau of Labor Statistics. It is among the most common measures of inflation, indicating the health and direction of the economy.
Detailed explanation-2: -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.
Detailed explanation-3: -In short, the CPI measures the change in the cost of a fixed basket of goods and services, whereas a COLI measures the change in the cost of a fixed level of “well-being".
Detailed explanation-4: -Basic Info. US Consumer Price Index YoY is at 6.41%, compared to 6.45% last month and 7.48% last year. This is higher than the long term average of 3.28%.
Detailed explanation-5: -What Is a Basket of Goods? The consumer price index (CPI), a common measure of inflation, measures the price change over time for a basket of goods and services. The basket is representative of consumer spending patterns, and the change in its price represents the rate of inflation faced by consumers as a whole.