A percentage increase in the overall price level is called
A) cost of living.
B) inflation.
C) Paasche index.
D) Fischer index.

Question

Quizplus · Accepted Answer

Inflation refers to the percentage increase in the overall price level, which is measured by indexes like the Consumer Price Index (CPI) or the Producer Price Index (PPI). Option A, cost of living, refers to the amount of money needed to sustain a certain standard of living and is affected by inflation. Options C and D, Paasche index and Fischer index, are both methods for calculating price indexes but are not synonymous with inflation itself.

A Percentage Increase in the Overall Price Level Is Called