Larry and Moe are having an argument.Larry believes that over the past year,the economy is experiencing rapid inflation,while Moe says that the economy actually experienced disinflation during this period.The easiest way for Larry and Moe to settle their argument is to look at GDP figures for the past year.
Level of Learning 3: Application of principles

Question

Quizplus · Accepted Answer

GDP figures alone cannot determine whether the economy is experiencing inflation or disinflation. Larry and Moe need to look at other economic indicators such as the CPI (Consumer Price Index) and PPI (Producer Price Index) to make a more informed decision. GDP figures only show the total value of goods and services produced by a country in a specific period of time.

Larry and Moe Are Having an Argument