I the CPI Serves Only One Major Function: as an Economic

Multiple Choice

i. The CPI serves only one major function: as an economic indicator of the rate of inflation.
ii. To construct a special-purpose index designed to measure general business activity, the weights
Are based on the judgments of the statistician and assigned to each series.
iii. The Consumer Price Index measures the change in prices of a fixed market basket of goods and
Services from one period to another.

A) (i) , (ii) , and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii) .
C) (i) and (iii) are correct statements but not (ii) .
D) (ii) and (iii) are correct statements but not (i) .
E) (i) , (ii) , and (iii) are all false statements.