How Can Inflation Be Measured

question 147

Multiple Choice

How can inflation be measured?

• A) by the change in the consumer price index
• B) by the percentage change in the consumer price index
• C) by the percentage change in nominal GDP
• D) by the change in the price of a specific commodity

---

Definitions:

Fixed Assets

Fixed Assets are long-term tangible assets that a company uses in its operations and which are not expected to be consumed or converted into cash within a year.

Working Capital

A firm’s investment in short-term assets—cash, marketable securities, inventory, and accounts receivable.

MVA

Market Value Added, a measure of a company's financial performance representing the difference between the market value of a firm and the capital contributed by investors.

Market Value Added

A calculation that shows the difference between the market value of a company and the capital contributed by investors.