Question

The Consumer Price Index (CPI) is determined each month by multiple choice 1 averaging all the prices of goods and services in the economy. estimating the prices of goods and services in the economy at the same rate as the cost of living increases. comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in cities around the country. comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.

Answer 1

Answer:

The Consumer Price Index (CPI) is determined each month by

comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.

Explanation:

The US Consumer Price Index (CPI) is an important statistical tool for identifying inflation and deflation periods in the US economy.  It computes the weighted average of prices of a predetermined basket of consumer goods and services. With the CPI changes, the assessment of the general cost of living in the economy becomes easier.