The percent increase in the CPI from one year to the next is a measure of the
A)GDP deflator.
B)unemployment rate.
C)real interest rate.
D)inflation rate.

Question

Quizplus · Accepted Answer

The percent increase in the Consumer Price Index (CPI) from one year to the next is a measure of the inflation rate. It reflects the percentage change in the average price level of a basket of goods and services consumed by households. Therefore, option D is the best choice. The GDP deflator measures the overall price level of goods and services produced in an economy, while the unemployment rate measures the percentage of the labor force that is unemployed. The real interest rate is the nominal interest rate adjusted for inflation.

The Percent Increase in the CPI from One Year to the Next