The Consumer Price Index of any given year provides _____.(1 point)

Question

Responses

the nominal price of a basket of consumer goods
the nominal price of a basket of consumer goods

the relative price of a basket of consumer goods as compared to base year prices
the relative price of a basket of consumer goods as compared to base year prices

the relative price of all consumer goods in the economy as compared to base year prices
the relative price of all consumer goods in the economy as compared to base year prices

the nominal price of all consumer goods in the economy
the nominal price of all consumer goods in the economy

Answer 1

The correct response is:

the relative price of a basket of consumer goods as compared to base year prices.

The Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services, comparing it to prices in a base year.