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Which of the following leads to a distortion in the impact of the rate of inflation over a time period, such as a year?


Individuals may have incomes that change during the time period.


Some prices in the basket of goods used to calculate the rate of inflation may actually fall and not rise.


The rate of unemployment may be changing and that might influence the rate of inflation.


Individual consumers may buy few of those goods whose price has risen, mitigating the impact of inflation on their standard of living.

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