The inflation rate can be calculated as the percentage change in:
A) real GDP.
B) nominal GDP.
C) the Consumer Price Index.
D) the exchange rate.

Question

Quizplus · Accepted Answer

The inflation rate is calculated as the percentage change in the Consumer Price Index, which measures the average change in prices of a basket of goods and services consumed by households. It is used to track changes in the cost of living and the purchasing power of a currency. Real GDP and nominal GDP measure the value of goods and services produced within an economy, while the exchange rate measures the value of a currency relative to another currency.

The Inflation Rate Can Be Calculated as the Percentage Change