How can inflation be measured?
A) by the change in the consumer price index
B) by the percentage change in the consumer price index
C) by the percentage change in nominal GDP
D) by the change in the price of a specific commodity

Question

Quizplus · Accepted Answer

The percentage change in the consumer price index (CPI) is the most commonly used measure of inflation. CPI measures the average change in prices paid by consumers for goods and services over time. It is calculated by comparing the price of a basket of goods and services in the current period to the price in a base period. The percentage change in CPI indicates the rate of inflation.

How Can Inflation Be Measured