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Gnom [1K]
3 years ago
10

What index is used to measure the average prices paid by a typical​ family? An average of the prices of the goods and services p

urchased by a typical family is​ the: A. inflation rate index. B. consumer price index​ (CPI). C. producer price index​ (PPI). D. aggregate price level index. Suppose the​ economy's consumer price index​ (CPI) in 2008 was 188 and the CPI in 2009 was 199. The inflation rate over the period from​ 2008-2009 was equal to nothing​%. ​(Enter your response rounded to one decimal​ place.)
Business
1 answer:
slavikrds [6]3 years ago
5 0

Answer:

B. Consumer Price Index​ (CPI)

Inflation over the period 2008-2009: 5.85%

Explanation:

The CPI metric is a weighted average price of the goods and services which are consumed by a typical family. It is calcualte on a monthly basis and it is used to calcualte the inflation rate:

\delta = \frac{CPI_1}{CPI_0} - 1

In this case:

\delta = \frac{199}{188} - 1

199/188 - 1 = 0,058510638 = 5.85%

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Answer:  

Direct Method

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