ECONOMICS
INFLATION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the Dow Jones Index.
|
|
|
the rate of inflation.
|
|
|
the unemployment rate.
|
|
|
currency exchange rates.
|
Detailed explanation-1: -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-2: -The CPI is often used to adjust consumers’ income payments (for example, Social Security), to adjust income eligibility levels for government assistance, and to automatically provide cost-of-living wage adjustments to millions of American workers.
Detailed explanation-3: -The basket of goods and services used for CPI includes popular items that Americans regularly purchase. The value of the items is proportional to how they are sold. The current cost of the basket is compared to its cost in the prior year, and then multiplied by 100 to determine the percentage.
Detailed explanation-4: -About the CPI Inflation Calculator The CPI inflation calculator uses the Consumer Price Index for All Urban Consumers (CPI-U) U.S. city average series for all items, not seasonally adjusted. This data represents changes in the prices of all goods and services purchased for consumption by urban households.