7
QuizMultiple Choice

Measuring the Economy

Question 7 • VT-GA-EOC-Personal Finance & Economics A ULHS

The percentage of decrease in the average price of the economy’s goods and services is known as the __________.

Answer
A
nonlabor force
B
deflation rate
C
unemployment rate
D
consumer price index

Explanation

A decrease in the average price level of goods and services is called deflation, and the percentage change measuring that decrease is the deflation rate. The consumer price index tracks price levels; it is not the name for the percentage decrease.

AI-written and checked against the verified answer.

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