📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      What does an increase in the Consumer Price Index (CPI)

      signify?Statements:(I) A rise in retail prices(II) An increase in consumers' purchasing power(III) Inflationary trends in the economy
      A Statements I and II Correct Answer Incorrect Answer
      B Statements II and III Correct Answer Incorrect Answer
      C Statements I and III Correct Answer Incorrect Answer
      D Only Statement II Correct Answer Incorrect Answer

      Solution

      The Consumer Price Index (CPI) is a key economic indicator that tracks changes in the overall price level of a standard basket of goods and services consumed by households. A rise in the CPI reflects increasing retail prices, which indicates inflation in the economy. As prices increase, the purchasing power of consumers generally declines, not rises.Hence, statements I and III are correct.

      Practice Next
      More Weekly Quiz GA for SSC Questions
      ask-question