Question

The consumer price index reflects: the prices of all goods and services computed from the ratio of nominal GDP to real GDP. changes in the prices of goods and services typically purchased by consumers. the level of prices for raw materials. the level of prices for intermediate goods and services purchased by businesses.

Answer 1

Answer:

The correct answer is letter "B": changes in the prices of goods and services typically purchased by consumers.

Explanation:

The Consumer Price Index (CPI) is seen as the U.S. economy's standard inflation guide. It uses a goods basket approach which aims to compare a consistent year-to-year product base focusing on products that consumers buy and use every day. Consumer staples are the base for computing the CPI.