Question

Two economics professors are discussing a measure of inflation over time based on a basket of goods comprised of only the consumption expenditure component of GDP. Which measure is it

Answer 1

Consumer price index

Step-by-step explanation:

Inflation is the persistent rise in general price levels

Consumer price index is a measure of inflation

Consumer price index measures the weighted average of prices of a basket of consumer goods and services. Changes in the CPI over time gives a measure of the inflation rate