In Sequence, What Are the Steps Involved in Calculating the Consumer

Multiple Choice

In sequence, what are the steps involved in calculating the consumer price index and the inflation rate?

A) choose a base year, determine the basket, compute the index, compute the basket's cost, and compute the inflation rate
B) choose a base year, find the prices, determine the basket, compute the basket's cost, and compute the inflation rate
C) determine the basket, find the prices, compute the basket's cost, choose a base year and compute the index, and compute the inflation rate
D) determine the basket, find the prices, compute the index, choose a base year and compute the inflation rate