Economics (AS & A Level) · Oct / Nov 2023 · Paper 11 · Question 19
9708Price stability
Which statement best describes the consumer prices index (CPI)?
- AIt is a measure of changes in the spending patterns of the average household.
- BIt is a measure of changes in the standard of living of the average household.
- CIt is a measure of the average change in prices of a basket of goods and services over time.
- DIt is a measure of the level of prices of all goods and services.
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Correct answer: C. It is a measure of the average change in prices of a basket of goods and services over time.
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