Answer:
The Consumer Price Index (CPI) and the gross domestic product (GDP) price index and implicit price deflator are measures of inflation in the U.S. economy. The CPI measures price changes in goods and services purchased out of pocket by urban consumers, whereas the GDP price index and implicit price deflator measure price changes in goods and services purchased by consumers, businesses, government, and foreigners, but not importers. Thus, which one to use in a given scenario depends on one’s purpose.
The Consumer Price Index (CPI) and the gross domestic product (GDP) price index and implicit price deflator are measures of inflation in the U.S. economy. The CPI measures price changes in goods and services purchased out of pocket by urban consumers, whereas the GDP price index and implicit price deflator measure price changes in goods and services purchased by consumers, businesses, government, and foreigners, but not importers. Thus, which one to use in a given scenario depends on one’s purpose.Inflation can be defined as a consistent increase in an economy’s “price level,” or the price component of total expenditures on a set of goods and services, over a given period. The Consumer Price Index (CPI), a product of the Bureau of Labor Statistics (BLS), is perhaps the most widely used measure of inflation in the United States. The CPI measures the average change over time in the prices paid by urban consumers in the United States for a market basket of goods and services.
Explanation:
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