The CPI can be used to measure the inflation rate. TRUE or FALSE The inflation rate for a given year can be found by taking the percentage change in the Consumer Price Index (CPI) from the previous year to the given year in question. TRUE or FALSE The Consumer Price Index (CPI) is a weighted average of the prices of all goods and services that are available in the U.S. economy. TRUE or FALSE A purpose of the Core Inflation Index is __. A. to help people determine global trends in the oil market B. to help companies make decisions about production and hiring C. to help consumers understand the overall cost of living from month to month D. to be a gauge from which to make important government policy changes Which of the following is true about the Producer Price Index? A. It is a price index that includes all output in a country's within a given time period. B. It measures price changes from the perspective of households C. It measures wage inflation in the labor market. D. It can be used to determine if there is a deflation in the prices of inputs used for production. Which of the following is true about the GDP deflator? A. It is based on the prices of merchandise that is exported or imported. B. It is a price index that is based on all the GDP components. C. It is a price index that is based on all goods and services produced by US nationals (including abroad). D. It is a price index that is based on all the GDP components except net exports. Inflation is a general and ongoing ___ in the ___ an entire economy. A. fall; output B. rise; level of prices C. nse; output D. fall; level of prices