Question

Cost of living at two different cities
can be compared with the help of
Value index
Consumer or Cost of Living price
index
Volume index
Un-weighted index​

Answer 1

Step-by-step explanation:

Consumer price index

Consumer Price Index can be used to compare the cost of living at two different cities.

More the CPI, higher is the cost of living in that city.

Answer 2

Answer:

The correct option is (b) Consumer or Cost of living price index.

Therefore, cost of living at two different cities can be calculated with the help of consumer or cost of living price index.

Step-by-step explanation:

• To compare the cost of living between two cities, use the consumer price index (CPI).
• The Consumer Price Index (CPI) is a tool for calculating the weighted average cost of consumer goods and services, such as food, healthcare, and transportation.
• By averaging the cost changes of each item in the preset bag of products, the consumer price index is determined.
• Changes in the consumer price index are used to determine price changes associated with the cost of living in the economy.
• One of the extensively used statistics for determining periods of inflation or deflation is the CPI.
• To monitor inflation, a nation's prices for a variety of products and services are recorded in the Consumer Price Index (CPI).
• Anything from a loaf of bread to a holiday can be included.
• Every month, prices for 80,000 different items are gathered throughout the US.
• About one-fifth of the OECD countries are experiencing double-digit increases in consumer costs.
• An essential gauge of an economy's health is inflation.
• The CPI and other indexes are used by governments and central banks when making economic decisions.
• The decision to raise or cut interest rates is crucial among these.
• Aiming to reduce consumer spending and inflation, higher interest rates make borrowing money more expensive.
• Lower interest rates have the opposite effect and are intended to boost consumer spending in order to keep inflation within a nation's desired range.

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