Ask Question
9 March, 23:22

Why is a hypothetical basket of goods used to measure inflation?

+5
Answers (1)
  1. 9 March, 23:53
    0
    Because consumers can see the general increase in price over time by using a basket of goods. In addition, Inflation is often measured by evaluating alterations in the cost of a fixed basket of goods and services. This technique overestimates inflation because it does not account for alterations in outgoings patterns that outcome from comparative price variations.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Why is a hypothetical basket of goods used to measure inflation? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers