Capital MarketsQuestion 337 of 398
The Consumer Price Index (CPI) is primarily used to measure:
a.The unemployment rate
b.The total output of the economy
c.Inflation, by tracking changes in the prices of a basket of consumer goods and services
d.The value of the U.S. dollar against foreign currencies
Explanation
The CPI tracks the average change over time in the prices paid by consumers for a representative basket of goods and services. It is the most widely followed measure of inflation, the general rise in prices that erodes purchasing power.
Practice all 398 questions free — no signup required.
Related questions on this topic
- Fiscal policy, as distinguished from monetary policy, is controlled by which entities?
- Gross domestic product (GDP) is best defined as:
- A common technical definition of a recession is:
- As market interest rates rise, what generally happens to the prices of existing fixed-rate bonds?
- A normal (positive) yield curve is best described as one in which:
- An inverted yield curve, in which short-term yields are higher than long-term yields, is often viewed by economists as a potential signal of:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against FINRA Securities Industry Essentials (SIE) Exam · How we review