Inflation can be measured by the:
A)percentage change in the consumer price index.
B)absolute change in the consumer price index.
C)absolute change in the GDP deflator.
D)percentage change in GDP.

Question

Quizplus · Accepted Answer

Inflation is typically measured by the percentage change in the consumer price index (CPI), which tracks the price changes of a basket of goods and services typically consumed by households. The CPI is considered a reliable indicator of inflation as it measures the changes in the cost of living for consumers.

Inflation Can Be Measured by The