Question

Inflation can be measured by the a. change in the consumer price index. Inflation in the U.S. has averaged about 2.5% over the last 80 years. b. change in the consumer price index. Inflation in the U.S. has averaged about 4% over the last 80 years. c. percentage change in the consumer price index. Inflation in the U.S. has averaged about 3.6% over the last 80 years. d. percentage change in the consumer price index. Inflation in the U.S. has averaged about 4% over the last 80 years.

Answer 1

Answer:

The correct answer is option c.

Explanation:

Inflation can be defined as a continuous and sustained increase in the general price level. There are several types of inflation such as cost-push and demand-pull inflation.  

The rate of inflation can be calculated by finding the rate of change in the price level. The consumer price index is a tool that is used to measure the rate of inflation.  

According to the official data, over the last 80 years, the inflation rate has averaged to 3.6% in the US. This means that the price level has increased by a rate of 3.6% in the last 80 years.