Question

MICROECO HELP!!!

Which of the following are used by economists as indicators of inflation?
CPI
GDP
GDP Deflator
PPI

I and III only
I and IV only
I, II, and IV only
I, III, and IV only
I, II, III, and IV

Answer 1

I and III only.

CPI and GDP deflator are two important economic indicators that measure the price level of goods and services. CPI, or Consumer Price Index, measures the price level of consumer goods and services. GDP deflator, on the other hand, measures the price level of all final goods and services produced within a country’s borders. Both CPI and GDP deflator are important for tracking inflation and economic growth, as well as for making economic policy decisions.