Question

Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.

The CPI for this year is calculated by dividing the _____.value of all goods and services produced In the economy In the base yearvalue of none goods and services produced In the economy In the base yearNone of above

Answer 1

Step-by-step explanation:

Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.

The CPI for this year is calculated by dividing the CPI using GDP inflator and multiplying by 100. However, the CPI reflects only the prices of all goods and services.

Examples include A decrease in the price of a Chinese made car that is popular among U.S. consumers.