Inflation is measured
A)using the level of the consumer price index.
B)as the percentage change in the consumer price index.
C)using the level of real GDP.
D)as the percentage change in real GDP.

Question

Quizplus · Accepted Answer

Inflation is typically measured as the percentage change in a price index, such as the consumer price index (CPI), which tracks the prices of a basket of goods and services commonly purchased by households. The level of real GDP is used to measure economic growth, not inflation.

Inflation Is Measured