The CPI is calculated by

A) summing the prices of all consumption goods in the economy.
B) multiplying the rate of inflation in the economy times the unemployment rate.
C) surveying a group of consumers and asking them about their monthly expenditures on necessities.
D) pricing a basket of goods and services purchased by a typical urban householD.

The CPI (Consumer Price Index) is calculated by pricing a basket of goods and services that are typically purchased by a typical urban household. These goods and services include things like food, housing, healthcare, transportation, and more. The prices are then weighted according to the typical household's spending patterns, and the resulting index represents the average change in prices over time for this group of goods and services. This allows economists to track inflation and adjust economic policies accordingly.