Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

Which statement provides the most accurate description of the consumer prices index (CPI)?

  • AIt is a measure of changes in the spending patterns of the average household.
  • BIt is a measure of changes in the standard of living of the average household.
  • CIt is a measure of the average change in prices of a basket of goods and services over time.
  • DIt is a measure of the level of prices of all goods and services.

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