The annual inflation rate measures the percentage growth rate of

A. the CPI from one year to the next.
B. the CPI from the base period 1982-84 to a given year.
C. real GDP from the base period 1982-84 to a given year.
D. real GDP from one year to the next.

Answer: A

Economics

You might also like to view...

When a government reduces its deficits by increasing taxes, in the short run,

A) output returns to potential. B) output increases. C) interest rate is higher. D) IS curve shifts inward to the left.

Economics

The Paradox of Thrift highlights the idea that:

A.  Saving more is good for the economy in the short run B.  Saving more can be bad for the economy during a recession C.  In spending more, households will end up saving less D.  In spending more, workers may end up losing their jobs

Economics