Question

The inflation rate:___________
a. calculates the percentage change in the overall price level.
b. describes the amount an economy can grow if the factors of production are used efficiently.
c. measures the rate of increase in the cost of imported goods.
d. cannot be accurately measured with the CPI.

Answer 1

The correct answer is C

Answer 2

The inflation rate measures the rate of increase in the cost of imported goods.

What is an inflation rate?

• The general price increase of particular goods and services over a predetermined period is measured by the inflation rate. Inflation is often measured and reported as a percentage and can be a sign of a deterioration in a country's currency's value or purchasing power.
• The inflation rate is typically calculated using the inflation rate formula:
• (B - A)/A x 100 where A is the starting number and B is the ending number.**

Therefore, the correct answer is option (c)

Reference link:

https://brainly.com/question/17469690

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