Core inflation is commonly measured by excluding which types of prices from a general consumer price index?
Correct answer: A. Highly volatile food and energy prices
- A. Highly volatile food and energy prices
- B. Prices of all domestically produced goods
- C. Prices of all imported capital goods
- D. Prices of services supplied by government offices
Explanation
Core inflation removes items such as food and energy whose prices often fluctuate sharply in the short term. It is intended to show the underlying and more persistent trend in consumer prices, not to ignore all domestic or imported goods.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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