CLEP Principles of Macroeconomics Exam Prep

Answer - B - CPI is the term for the economic indicator that measures change in price over time, using a fixed market basket of average services and goods.

Key Takeaway: CPI is the economic indicator that measures change in price over time, using a fixed market basket of average services and goods. To calculate the Consumer Price Index (CPI), you need to set up a ratio between the cost of the market basket of goods in the given year to the cost of those same goods in the base year.