Which of the following is NOT a step in calculating the inflation rate from one period to the next?
A)Find the total value of the basket of goods and services.
B)Measure the change in quality of the products from one period to the other.
C)Collect the prices from the stores where people shop.
D)Find out what people typically buy.

Question

Quizplus · Accepted Answer

While measuring changes in the quality of products is important in calculating the true cost of living, it is not a step in calculating the inflation rate from one period to the next. The other three listed steps (finding the total value of the basket of goods and services, collecting prices from stores, and finding out what people typically buy) are all necessary steps in calculating the inflation rate.

Which of the Following Is NOT a Step in Calculating