When the Media Report the U

question 88

Multiple Choice

When the media report the U.S.inflation rate, the number cited is usually a rate computed using

• A)the implicit price deflator.
• B)the consumer price index.
• C)the personal consumption expenditures price index.
• D)the ratio of real and nominal wages.

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Definitions:

Personal Income

The total amount of income earned by individuals or households from all sources before any taxes or deductions.

Economic Indicators

These are statistical metrics used to gauge the overall health of the economy, including metrics like GDP, unemployment rates, and inflation.

GDP Implicit Price

A measure that reflects the changes in the prices of all goods and services included in the Gross Domestic Product, indicating the economy's inflation or deflation.

Price Level

A measure of the average prices of goods and services in the economy at a given time, often compared to a base year to assess inflation or deflation.