Which of the following statements about inflation is TRUE?
A) The consumer price index is a good way of measuring inflation.
B) Productivity decreases the purchasing power of consumer dollars.
C) Inflation increases the purchasing power of consumer dollars.
D) Localized price increases can cause inflation across the economic system.
E) The amount of money tends to be distributed evenly during inflationary periods.

Question

Quizplus · Accepted Answer

A)The consumer price index is a good measurement of inflation; inflation occurs with widespread price increases.

Which of the Following Statements About Inflation Is TRUE