Question

Measuring the rate of inflation using a market basket that excludes food and energy prices is preferred by some analysts because this measure, called core inflation, Group of answer choices
is more consistent with measures of inflation used in other countries.
fluctuates more than measures of inflation that include food and energy prices.
gives a better measure of ongoing, sustained price changes.
provides a real, rather than a nominal, rate of inflation.

Answer 1

Answer:

gives a better measure of ongoing, sustained price changes.

Explanation:

• In order to measure the market-based rate of inflation that excludes the food and the energy processes are preferred by some economist as the core inflation that is long price trend and is frequent subject to the change as food and energy. As this index is based on the dynamic consumption basket the economic variables are adjusted by the price defoliator.