question 4 points 1 which measurement of inflation uses the price of a market basket as the basis for…

question 4 points 1 which measurement of inflation uses the price of a market basket as the basis for calculation? gdp price deflator consumer price index producer price index adjustor for real gdp

question 4 points 1 which measurement of inflation uses the price of a market basket as the basis for calculation? gdp price deflator consumer price index producer price index adjustor for real gdp

Answer

Brief Explanations:

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market - basket of consumer goods and services. It uses the price of a market basket as the basis for calculation. The Producer Price Index (PPI) measures the average change over time in selling prices received by domestic producers for their output. The GDP price deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy. The adjustor for real GDP is related to adjusting nominal GDP for inflation but is not a direct measure that uses a market - basket price basis like CPI.

Answer:

C. Consumer Price Index