Question

Over dinner, Ross complained about how prices have increased a great deal over the past year. Brenda disagrees, saying that the prices of some goods have gone up a bit, but other prices have declined, noting that you can get some good buys on houses right now. Ross feels that the average price of consumer goods has not changed. This couple can refer to the __________ to learn how government economists currently view the price situation.

Answer 1

CPI

Explanation: CPI measures the average changes in prices overtimes that consumers pay for a basket of goods and services commonly known as inflation. It attempts to qualify the aggregate price level in an economy and thus measure the purchasing power of the country's unit of currency. The weighted average of the prices of goods and services that approximates an individual's consumption pattern is used to calculate the CPI.

CPI is used as an economic indicator.

It is more used to measure inflation.

CPI covers professionals, self-employed, poor, unemployed and retired person

Two care reported each time CPI-W and CPI-U