5 Questions
What does inflation measure?
The rate of change in average prices of goods and services consumed by households
What is the Consumer Price Index (CPI) based on?
The average cost of a standard set of goods and services consumed by an average household
How is inflation usually gauged?
By the annual percentage change in the Consumer Price Index (CPI)
What is included in the CPI basket?
Various items like food, clothing, water, and electricity
What does low and stable inflation typically indicate?
Price stability
Test your knowledge on inflation, price stability, and the Consumer Price Index (CPI), which measures the average cost of goods and services consumed by a typical household. Learn how to gauge inflation and its importance in economics.
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