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Inflation can be measured by all of the following except the a. GDP deflator. b. consumer price index. c. producer price index. d. finished goods price index. e. All of the above are used to measure inflation.

Sagot :

Inflation is not measured by the finished goods price index.

What is inflation?

Inflation is a persistent rise in the general price levels in an economy. When there is inflation, the price of items increases.

What are the types of inflation?

  1. Demand pull inflation – this occurs when demand exceeds supply and this leads to an increase in price.
  2. Cost push inflation – this occurs when the cost of production increases which increases the cost of goods and services.

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