Macro What is the best definition of the basket of goods and

Macro}}| What is the best definition of the basket of goods and services included in the consumer price index? - MULTIPLE CHOICE

A. The consumer goods and services produced by Canadian firms.

B. The consumption pattern of a typical Canadian family.

C. The minimum acceptable consumption for a family of four as set by Stats Canada.

D. The sum of all domestic consumer goods bought by Canadians each month.

Please briefly explain your choice.

Solution

Option (B).

The CPI basket of goods & services represents the consumption pattern of a typical family.