Graph the annual (December to December) CPI inflation rate and the annual (fourth quarter to fourth quarter)

Question:

Graph the annual (December to December) CPI inflation rate and the annual (fourth quarter to fourth quarter) GDP deflator inflation rate since 1960 on the same figure. What are the conceptual differences between these two measures of inflation? Judging from your graph, would you say that the two measures give similar or different estimates of the rate of inflation in the economy?

Step by Step Answer:

Related Book For  book-img-for-question

Macroeconomics

ISBN: 9780134167398

9th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

Question Posted: