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Which statement best explains Consumer Price Index?

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Question ID #26402 UPSC UPSC EPFO APFC 2026 Mock Test Series UPSC EPFO APFC Indian Economy Sectional Test 2026 Medium

Which statement best explains Consumer Price Index?

Correct Answer: B. Index measuring changes in retail prices of a basket of consumer goods and services
Consumer Price Index: Index measuring changes in retail prices of a basket of consumer goods and services

Question: Which statement best explains Consumer Price Index?

A. Excess of total expenditure over total non-debt receipts of government

B. Index measuring changes in retail prices of a basket of consumer goods and services

C. Sustained decline in the general price level

D. Fiscal deficit minus interest payments

Correct Answer: B. Index measuring changes in retail prices of a basket of consumer goods and servicesConsumer Price Index: Index measuring changes in retail prices of a basket of consumer goods and services

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Which statement best explains Consumer Price Index? - MCQ Explanation

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Correct answer: B. Index measuring changes in retail prices of a basket of consumer goods and services