Question

The Consumer Price Index 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 of the typical basket of goods consumed in period 1 to the cost of a basket of goods typically consumed in period 2 C. measures the average of the prices paid by urban consumers for a fixed basket of goods and services D. measures the increase in the prices of the goods included in GDP

Answer 1

Answer:

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.

Explanation:

The consumer price index refers to the price change with related to the goods and services consumed by the consumer or purchased i.e foods, medicine, clothing, etc

Moreover, it also determines the changes in the price level as compare to the base year

And, there is a negative relationship between the price level and the money value.