Answer:
The consumer price index is used to measure the quantity of goods and services that the economy is producing.
Explanation:
CPI or consumer price index is a measure of changes in the average prices of a basket of products and services in a given time. The selected goods and services are a fair representation of consumption expenditure in the economy. Economists use the CPI as a Macroeconomic indicator of inflation.
As a measure of inflation, the CPI statistics communicate increases or decreases in the prices of goods and services in the economy. It forms a basis for policy decisions by the government that aid in the prevention of reduced purchasing power of the dollar. CPI is all about changes in prices and nothing to do with the production of goods and services.
It is not correct that d. The consumer price index is used to measure the quantity of goods and services that the economy is producing.
It is an economic measure that allows for the measurement of changes in the cost of living over a period of time.
As a result, it is an efficient measure used to check the inflation rate in a country. It is not used to measure the goods and services being produced however.
In conclusion, option D is correct.
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