The Consumer Price Index (CPI)

Multiple Choice

The consumer price index (CPI)

A) is the ratio of the average price of a typical basket of goods to the cost of producing those goods.
B) compares the cost in the current period to the cost in a reference base period of a basket of goods typically consumed in the base period.
C) measures the increase in the prices of the goods included in GDP.
D) compares the cost of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2.