16
QuizMultiple Choice

The Economy of the US — Unit test

Question 16 • EA Academy Civics 9

What does the Consumer Price Index (CPI) measure?

Answer
A
The CPI measures the rate of inflation.
B
The CPI measures the effect of deflation.
C
The CPI measures the use of factors of production.
D
The CPI measures the public’s demand for goods.

Explanation

The Consumer Price Index tracks changes over time in the prices consumers pay for a typical basket of goods and services. Those price changes are used to measure inflation, so the correct choice is “The CPI measures the rate of inflation.”

AI-written and checked against the verified answer.

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