What tool does the government use in order to gauge inflation?
A)Inflation index
B)Market increase/decrease cost
C)The Consumer Price Index
D)The money illusion

Question

Quizplus · Accepted Answer

The government uses the Consumer Price Index (sometimes shortened to CPI) in order to gauge inflation.
Key Takeaway: To use it properly, the Department of Labor Statistics will look at and measure the prices of items across a broad spectrum of goods to assess for inflation or deflation. They can then effectively adjust social security payments and income tax brackets to compensate for the change in market prices.

What Tool Does the Government Use in Order to Gauge