Question

Which of the following statements is correct?

a.The CPI can be used to compare dollar figures from different points in time.
b.The percentage change in the CPI is a measure of the inflation rate, but the percentage change in the GDP deflator is not a measure of the inflation rate.
c.Compared to the consumer price index (CPI), the GDP deflator is the more common gauge of inflation.
d.The GDP deflator better reflects the goods and services bought by consumers than does the CPI.

Answer 1

The correct option to the following question is a.).

Step-by-step explanation:

The CPI(Consumer Price Index) is the broad measures of the inflation within the economy in relation to cost of services and goods. Which figure can have the significant impacts on a value of the currency in relation to these currencies of the other nations.

The Consumer Price Index calculates a weighted average of the prices of basket of the consumers' services and goods, including the costs of energy, transportation, and food. The Economists use the CPI figures to assess the price changes in an individuals’ costs of living.