multiple choice question\nwhen the bureau of labor statistics calculates the cpi, they\nallow both prices…

multiple choice question\nwhen the bureau of labor statistics calculates the cpi, they\nallow both prices and the goods and services purchased by consumers to vary over time.\nconsider a fixed basket of goods and services, and allow the price of the items in that basket to vary over time.\nconsider a fixed set of prices and allow the goods and services that consumers purchase to vary over time.\nconsider a fixed basket of goods and services and a fixed set of prices.

multiple choice question\nwhen the bureau of labor statistics calculates the cpi, they\nallow both prices and the goods and services purchased by consumers to vary over time.\nconsider a fixed basket of goods and services, and allow the price of the items in that basket to vary over time.\nconsider a fixed set of prices and allow the goods and services that consumers purchase to vary over time.\nconsider a fixed basket of goods and services and a fixed set of prices.

Answer

Brief Explanations:

The Consumer - Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It uses a fixed basket of goods and services and tracks how the prices of those items change over time.

Answer:

B. consider a fixed basket of goods and services, and allow the price of the items in that basket to vary over time.