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18 February, 16:25

Which of the following indicators provides the clearest indication that an economy is experiencing deflation?

A. A decrease in the unemployment rate.

B. A decrease in GDP.

C. An increase in the PPI.

D. A decrease in the CPI.

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Answers (2)
  1. 18 February, 18:37
    0
    The correct option is D

    Explanation:

    The Consumer Price Index examines the average prices of consumer goods and services e. g transportation, food, medical etc. This CPI is the most used indicator in identifying periods of inflation and deflation.
  2. 18 February, 20:02
    0
    D. A decrease in the CPI.
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Home » Business » Which of the following indicators provides the clearest indication that an economy is experiencing deflation? A. A decrease in the unemployment rate. B. A decrease in GDP. C. An increase in the PPI. D. A decrease in the CPI.
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