Statement I: The CPI goes up every year;it can never go down.
Statement II: In constructing the Consumer Price Index,the Bureau of Labor Statistics compiles a market basket of hundreds of goods and services that the typical urban family buys in the base year.

A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Consumer Price Index

An index that measures the average change in prices paid by consumers for a basket of goods and services over time, often used as an indicator of inflation.

Bureau of Labor Statistics

A U.S. government agency responsible for collecting and analyzing economic data related to labor market activity, working conditions, and price changes in the economy.

Market Basket

A selected collection of goods and services used to track price changes for the purpose of measuring inflation.