Written by the Fiveable Content Team • Last updated August 2025
Verified for the 2027 exam
Verified for the 2027 exam•Written by the Fiveable Content Team • Last updated August 2025
Definition
A measure of the change in income a consumer would need to maintain the same standard of living over time, calculated as the cost of a fixed basket of goods and services in a given year relative to a base year.