Asked by Kamalpreet Singh on Jul 26, 2024
Verified
The inflation rate is measured as the percentage change in a price index.
Inflation Rate
The rate at which the overall price level of goods and services increases, leading to a decrease in purchasing power.
Price Index
A statistical measure that examines the weighted average of prices of a basket of consumer goods and services, used to monitor inflation or deflation.
- Explain the concepts of inflation, deflation, and how they are measured.
Verified Answer
AA
Abdullah Al RikabiJul 28, 2024
Final Answer :
True
Explanation :
The inflation rate is indeed measured as the percentage change in a price index, typically the Consumer Price Index (CPI) or the Wholesale Price Index (WPI), over a specific period of time.
Learning Objectives
- Explain the concepts of inflation, deflation, and how they are measured.