Inflation Flashcards
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
