Answered

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Which of the following helps calculate the inflation rate?

A. Central Intelligence Agency (CIA)
B. Consumer Price Index (CPI)
C. Gross Domestic Product (GDP)
D. Federal Bureau of Investigation (FBI)

Sagot :

GinnyAnsweridn

Final answer:

The Consumer Price Index (CPI) is crucial for calculating inflation rates. The Bureau of Labor Statistics takes measures to avoid biases in CPI, and other indices serve different economic purposes.


Explanation:

The Consumer Price Index (CPI) is the key tool used to calculate inflation rates in the U.S. It measures the average change over time in prices paid by urban consumers for goods and services.

The Bureau of Labor Statistics employs several methods to avoid biases in the CPI, such as updating the basket of goods, considering substitution effects, and adjusting for quality changes.

Different from the CPI, other indices like the Producer Price Index (PPI), International Price Index, Employment Cost Index, and GDP deflator focus on specific aspects of the economy like producer prices, international trade prices, wages, and overall economic output.


Learn more about Inflation calculation here:

https://brainly.com/question/39795917


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