Which of the following statements is INCORRECT about the consumer price index? Question 5Answer a. It captures the weight or importance of the different goods and services in the basket chosen b. It measures the changes in the quantity of the typical goods and services that households consume c. It measures the changes in the prices of the typical goods and services that households consume d. It is a measure of inflation

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 17P
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Which of the following statements is INCORRECT about the consumer price index?

Question 5Answer

a.
It captures the weight or importance of the different goods and services in the basket chosen
b.
It measures the changes in the quantity of the typical goods and services that households consume
c.
It measures the changes in the prices of the typical goods and services that households consume
d.
It is a measure of inflation
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