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Flashcards in Inflation Deck (3)
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0
Q

What is used as a chief measure of price inflation?

A

CPI

1
Q

What is inflation?

A

A rise in the general level of prices of goods and services in an economy over a period of time

It also reflects the purchasing power of money (loss of it)

2
Q

What is the consumer price index?

A

A measure of the cost of living during a period of time.

Choose one year as reference year and set price index equal to 100. Price in other years are relative to base year