The common price indexes for measuring inflation include the I. consumer price index. II. GDP deflator. III. commodity price index.
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

The most common price indexes for measuring inflation are the consumer price index (CPI) and the GDP deflator. The CPI measures changes in the prices of goods and services purchased by consumers, while the GDP deflator measures price changes in all goods and services produced in an economy. The commodity price index, on the other hand, tracks the price changes of specific raw materials and commodities rather than focusing on the overall price level of an economy. Therefore, the correct choice is A, which includes only the CPI and GDP deflator as the common price indexes for measuring inflation.

The Common Price Indexes for Measuring Inflation Include the I