ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The consumer price index (CPI) measures the cost of all consumer goods and services
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A 10% rate of inflation means that inflation is 10% per month
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The inflation rate is calculated from a set of CPI figures.
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None of the above
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Detailed explanation-1: -First, subtract the CPI from the beginning date (A) from the later date (B), and divide it by the CPI for the beginning date (A). Then multiply the result by 100 to get the inflation rate percentage.
Detailed explanation-2: -The CPI is the most widely used measure of inflation and is sometimes viewed as an indicator of the effectiveness of government economic policy.
Detailed explanation-3: -Answer and Explanation: The correct answer is A. CPI includes products that are widely used, while the GDP price index includes all goods and services. The CPI does not include all the goods and services.
Detailed explanation-4: -The Consumer Price Index (CPI), produced by the Bureau of Labor Statistics (BLS), is the most widely used measure of inflation. The primary CPI (CPI-U) is designed to measure price changes faced by urban consumers, who represent 93% of the U.S. population.