CPI tries to directly show:
a) The Macro quantity
b) The Macro price
c) The 'Real' value of a good
d) The price adjusted factor
Consumer Price Index:
The consumer price index (CPI) is a measure of aggregate price level in an economy. The index computes expenditure weighted average price of goods in a basket. The basket of goods are chosen such that they represent the consumption patterns of an average household in the economy.
Answer and Explanation:
The answer is b).
The consumer price index (CPI) is a index that tracks the overall price level in an economy. It shows Macro price in the sense that CPI indicates the aggregate price level, instead of the price of a specific good, or a small set of goods. This is done by calculating the average price of goods in a basket that is constructed to be representative of average household consumption patterns.
Learn more about this topic:
from Economics 102: MacroeconomicsChapter 5 / Lesson 2
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