One measure of the inflation rate is the
A) sum of the CPIs of adjacent years.
B) percentage change in the CPI of adjacent years.
C) percentage change in the Real GDP of adjacent years.
D) GDP minus the Real GDP in a year.

Question

Quizplus · Accepted Answer

The percentage change in the CPI (Consumer Price Index) of adjacent years is a commonly used measure of inflation rate. It compares the average price of goods and services in one year to the average price of the same goods and services in the preceding year, indicating the change in the overall cost of living.

One Measure of the Inflation Rate Is the