The inflation rate is calculated A. by determining the change in the price index from the preceding period. B. by adding up the

Question

4 years ago

7

The inflation rate is calculated A. by determining the change in the price index from the preceding period. B. by adding up the

price increases of all goods and services. C. by computing a simple average of the price increases for all goods and services. D. by determining the percentage change in the price index from the preceding period.

Business

1 answer:

ahrayia [7] · Answer 1 · 2022-03-05T15:48:57+03:00

Answer:

D. by determining the percentage change in the price index from the preceding period.

Explanation:

Inflation rate -

Consumer price index , is the average of all the good's price .

Inflation is the overall increase in the value of the Consumer Price Index ( CPI ) .

Inflation rate , is the percentage increase in the vale of the CPI with respect to the previous year .

Hence , the correct statement for the inflation rate is option ( D. ) .