The Higher the GDP Deflator,the _____ the Degree of Inflation

question 203

Short Answer

The higher the GDP deflator,the _____ the degree of inflation.

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Definitions:

Inflation Rate

The rate expressed as a percentage at which the average price level of goods and services increases, leading to a decrease in purchasing power.

CPI

A rephrased definition for Consumer Price Index, which tracks changes in the price level of a market basket of consumer goods and services purchased by households.

Dividing

The arithmetic operation of distributing a quantity into equal parts or groups.

Current Year CPI

The Consumer Price Index for the current year, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.