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How is inflation calculated? Why? A: Inflation is calculated by determining the rate at which the demand for particular goods and services has increased over

How is inflation calculated? Why?

A: Inflation is calculated by determining the rate at which the demand for particular goods and services has increased over a period of time in an economy.

-or-

B: Inflation is calculated by determining the rate at which the average price level of particular goods and services increases over a period of time in an economy.

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