The consumer price index is created by

A) calculating the cost of a "basket" of consumer goods typically bought by an American family in any year as a percentage of their cost in a base year.
B) the Congressional Budget Office.
C) averaging the price increases for all consumer goods in the GDP and adding 100.
D) dividing nominal dollar consumer expenditures by base year consumer expenditures.

Consumer Price Index

A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Base Year

A specific year chosen as a point of reference or standard of comparison for financial or economic data.

American Family

A social unit in the United States consisting of individuals related by blood, marriage, or adoption, characterized by diverse structures and cultural practices.