Which of the Following Statements Is Not True Regarding the Consumer

Multiple Choice

Which of the following statements is not true regarding the Consumer Price Index (CPI) ?

A) The CPI describes the change in prices from one period to the next for a fixed "market basket" of goods and services.
B) The CPI is used as a measurement of inflation.
C) The CPI is used as a "cost of living" adjustment in labor contracts.
D) The CPI is used as a means of deflating current prices or wages to "real" prices wages.
E) All of these statements are true.