Which of the Following Is a Measure of Inflation Based

question 10

Multiple Choice

Which of the following is a measure of inflation based on changes in the cost of a market basket of consumer goods and services?

• A)Inflation
• B)Consumer price index (CPI)
• C)Purchasing power
• D)None of these

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Definitions:

Tax Revenues

The financial earnings governments receive through taxing.

Discretionary Economic Policy

Economic policies that are based on the judgment and decisions of policymakers rather than set by predefined rules or automatic mechanisms.

Keynesians

Adherents to the economic theories of John Maynard Keynes, emphasizing the importance of total spending in the economy and government interventions to stabilize economic cycles.

Classical Economists

Early economic theorists who focused on the forces of supply and demand, competition, and free markets as the drivers of economic prosperity.