The index used most often to measure inflation is the?
Correct answer: D. consumer price index
- A. wholesale price index (WPI)
- B. GDP deflator
- C. Producer price index (PPI)
- D. consumer price index
Explanation
The consumer price index measures changes in the prices of a representative basket of goods and services bought by households, so it is the inflation measure most commonly cited. The GDP deflator and producer price index cover broader or different price groups.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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