The Steps Involved in Calculating the Consumer Price Index and the Inflation

question 19

Multiple Choice

The steps involved in calculating the consumer price index and the inflation rate, in order, are as follows:

• A)Choose a base year, update the basket, find the prices, estimate the basket's cost, compute the index, and compute the inflation rate.
• B)Choose a base year, fix the basket, find the prices, compute the inflation rate, compute the basket's cost, and compute the index.
• C)Fix the basket, find the prices, compute the basket's cost, choose a base year and compute the index, and compute the inflation rate.
• D)Fix the basket, find the prices, compute the inflation rate, compute the basket's cost, and choose a base year and compute the index.

---

Definitions:

Artificial Intelligence

The simulation of human intelligence in machines that are programmed to think like humans and mimic their actions.

Big Data Analytics

The process of collecting, processing, and analyzing large sets of data (big data) to uncover patterns, trends, and insights.

Decision Support

Systems or processes that help in making business or organizational decisions, often leveraging data and analytical models.

Caption

A property in a database that enables the field name to display in a more meaningful or readable manner.