The 'inflation rate' is measured as the:
A)percentage change in the relevant price index from one time period to another.
B)change in the price level between two time periods, multiplied by 100.
C)percentage change in prices in time period 1 minus the percentage change in prices in time period 2, multiplied by 100.
D)price index in time period 2 minus the price index in time period 1.

Question

Quizplus · Accepted Answer

The inflation rate is measured as the percentage change in the relevant price index from one time period to another. This is because inflation is a measure of the rate at which prices are changing over time, and the percentage change in a price index is a good way to measure this. The relevant price index can vary depending on what is being measured (e.g. consumer prices, producer prices, etc.), but the basic methodology for measuring inflation remains the same.

The 'Inflation Rate' Is Measured as The