Inflation Is Measured

question 59

Multiple Choice

Inflation is measured

• A)using the level of the consumer price index.
• B)as the percentage change in the consumer price index.
• C)using the level of real GDP.
• D)as the percentage change in real GDP.
• E)as the change in the value of the Canadian dollar.

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Definitions:

Perfectly Elastic

A situation in demand or supply where quantity changes infinitely in response to any change in price.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.

Accounting Profits

The total revenue of a business minus the explicit costs and depreciation expenses; it's a measure of a company's financial performance according to standard accounting principles.

Most Efficient Output

Refers to the highest amount of goods or services that can be produced with a given set of resources and technology without wasting any resources.