45. Consider a small economy in which consumers buy only two goods: pretzels and cookies. In order to compute the consumer price index for this economy for two or more consecutive years, we assume that:

a. the percentage change in the price of pretzels is equal to the percentage change in the price of cookies from year to year. b. the number of pretzels bought by the typical consumer is equal to the number of cookies bought by the typical consumer in each year. neither the number of pretzels nor the number of cookies bought by the typical consumer changes from year to year. d. neither the price of pretzels nor the price of cookies changes from year to year.

The consumer price index measures the changes in the price level of a basket of good. It is used to measure the rate of inflation.

Since the CPI measures changes in price level, it is assumed that quantities of goods purchased remains constant.

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mahak08 mahak08 · Answer 2 · 2022-03-01T14:28:51+01:00

A price index is a measure of relative price changes that consists of a series of numbers arranged in such a manner that comparing the values for any two periods or places reveals the mean change in prices among periods or the average variance in prices between locations.

What is CPI?

The Consumer Price Index (CPI) is a weighted average of prices for a basket of consumer goods and services such as transportation, food, and medical care.

It is obtained by summing the price fluctuations for each item in a set basket of products.

The Consumer Price Index (CPI) is used to evaluate price fluctuations related to the cost of living.

The consumer price index tracks changes in the price level of a selected basket of goods. It is used to calculate the inflation rate.

Thus Option D is correct. Because the CPI tracks price changes, it is believed that the quantity of items purchased remains constant.

For more information about CPI refer to the link:

https://brainly.com/question/14453270