Question

The consumer price index is the A. average of the prices of the goods and services purchased by a typical urban family of four. B. average of the prices of new final goods and services produced in the economy over a period of time. C. cost of a market basket of goods and services typically consumed in the current period. D. cost of a market basket of goods and services typically consumed in the base year.

Answer 1

The most viable answer is Option A.

Because CPI deals with changes in price level of average market basket of consumer goods purchased by households.