What factors are taken into consideration when calculating the Consumer Price Index (CPI) (1 point)
Responses
a The CPI calculates inflation by considering only the prices of luxury items, such as designer clothing, high-end electronics, and upscale dining.
b The Consumer Price Index (CPI) takes into consideration the prices of a fixed basket of goods and services commonly purchased by a typical urban household, such as food, clothing, housing, transportation, and healthcare.
c The CPI is primarily based on the stock market performance and the prices of commonly traded stocks, reflecting changes in investment values.
d The CPI takes into account the price changes of goods and services on a global scale, without distinguishing between domestic and international prices.