ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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difference between the current period CPI and the base period CPI.
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difference in the price level from one year to the next multiplied by 100.
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percentage change in the CPI from one year to the next.
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percentage change in composition of the CPI market basket from the base year to the next year.
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difference between the base period CPI and the current period CPI.
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Detailed explanation-1: -The inflation rate is determined by calculating the percentage change in a price index (such as CPI or the GDP deflator). The inflation rate tells us the percentage by which the price level is changing from period to period.
Detailed explanation-2: -Not seasonally adjusted CPI measures The Consumer Price Index for All Urban Consumers (CPI-U) increased 6.4 percent over the last 12 months to an index level of 299.170 (1982-84=100).
Detailed explanation-3: -The percentage change in the CPI is a measure of inflation.
Detailed explanation-4: -Explanation: A one percent increase in CPI from a year to the next year implies an increase in the price level in the economy that, in turn, explains the inflation rate.
Detailed explanation-5: -The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services.