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

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Measuring The Cost Of Living
Section: Chapter Questions
Problem 4CQQ
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Question
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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