Question

How does the Bureau of Labor Statistics determine how the market basket should change over time?


by evaluating the census


by conducting a Consumer Expenditure Survey


by calculating the inflation rate


by computing the Consumer Price Index

Answer 1

The Bureau of Labor Statistics (BLS) determines how the market basket should change over time primarily **by conducting a Consumer Expenditure Survey**. This survey collects data on the spending habits of households, which helps the BLS identify which goods and services are most commonly purchased and how spending patterns shift over time. The information from this survey is then used to update the market basket of goods and services that is used to calculate the Consumer Price Index (CPI).