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Earn +20 ptsQ: Which economic indicator measures inflation?
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When there is high inflation in country what are the measures taken by nation govt?
Govt measures inflation status by using economic policy instrument, fiscal and monetary policy directed toward market structure and the level of unemployment rate in the economy, because inflation and unmployment are corrolated. Finaly Govt mesure unemployment through inflation and inflation through unemployment.
Which economic indicator accounts for inflation and deflation by comparing average price changes to the prices of a chosen base year?
consumer price index
What are the 3 specific measures of economic performance that the US attempts to maximize to fulfill the goal of economic policy in the US?
Measures of Economic Performance(1) Gross Domestic Product (GDP)(2) Trade Gap(3) Rate of Inflation(4) Productivity of Labor
What impact will a negative demand shock have on the main measures of economic performance?
REal GDP will increase , inflation will increase, and unemployment will decrease
What economic indicator measures the change in prices of specific goods and services?
Gross Domestic Product
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