47.2k views
4 votes
The consumer price index (CPI) is used to compute inflation.

Question 9 options:
True
False

1 Answer

3 votes

Answer:

True

Step-by-step explanation:

The consumer price index or CPI measures the price that a person pays for goods or services that is in other words known as inflation. It measures the buying price of a nation's currency regarding how many items or services can you pay with what amount of money. And so if it measures that today you could buy 2 loaves of bread with a given price, but 10 years from now you can only buy 1 loaf that means the currency inflated.

User Stusmith
by
5.6k points